The Impossibility of the Reciprocal Tax Immunity in Favor of Correios Celular under the Principle of Free Competition

Abstract

The reciprocal immunity in CF/1988 establishes that the Federal Government, the states, the Federal District and municipalities are not allowed to impose taxes on property, income or services of each other (article 150, VI, “a”, CF/1988). However, its scope is limited by § 3 of art. 150, CF/1988. This exception led to theoretical conception that defends the disregard of reciprocal tax immunity of public companies that exploit economic activities in which there is direct action of private agents, considering that the concession of this benefit would unbalance the competition in favor of such state entity, what would directly confront the principle of free competition. Thus, considering that the businesses developed by Correios Celular extrapolate the activities related to the postal service, it is perfectly reasonable to state that EBCT, by offering the services of Correios Celular, performs economic activity and, therefore, not entitled to the reciprocal immunity conferred on EBCT.