THE KANDIR LAW AND CLASSICAL ECONOMIC THEORETICAL THOUGHT

Abstract

This research examines the principles and goals stated in the establishment of incentives for the production of primary exports in post-democratization Brazil, through Complementary Law No. 87 (Kandir Law) of 1996. This legislation exempts the Taxon Circulation of Goods and Services (ICMS) for primary and semi-processed products when exported. This analysis utilized the voting records on this law in the Chamber of Deputies and the Federal Senate, as well as the initial presentation of Complementary Bill No. 95 of 1996. We intend to compare the functioning of the mechanisms planned by the Law and argued in these documents with the classical economic literature of Adam Smith, David Ricardo, and John Stuart Mill, a literature developed regarding the analysis of the Corn Laws, which has applicability to today's issues.