ALMEIDA, I. S.; ALMEIDA, Igor Sarmento.
Resumen:
The Brazilian Northeast is one of the most affected region by regional inequality for many
decades, thus, aiming for a fair distribution of income and growth, the states realized that
through tax incentives, companies and organizations established in the territory became great
sources of income for the Localities that previously had a lower income and little
development. This form of attraction by the incentive developed more productive economic
sectors, where before the Gross Domestic Product came solely from agriculture. Paraiba
through the incentive offered to the companies that settle and contribute to the development of
the state, gained reference in the Northeast in relation to the growing economy. Soon the
Federal Government realized that the incentive offered by most of the federative entities was
generating instability in the revenue collection, contributing less to the transfer to the
municipalities and generating a tax dispute between the states to attract investors. The
problem of the present study demonstrates that despite the fiscal dispute between federative
entities and the reduction of the transfer of revenues to the municipalities, fiscal competition
has brought great benefits to the more remote localities, generating employment and income,
heating the economy and raising the Regions affected by economic and regional inequality.
The methodology used followed the historical-evolutionary and deductive method, through
documentary and bibliographic research. Based on laws, doctrines, scientific journals, articles,
among others. Analyzing the studies of the work, evidenced the advantages and importance
that the fiscal incentive brought to Paraiba and regions affected by the low development.