Incentivos fiscais e o princípio da legalidade: análise jurídica e econômica

The article analyzes tax incentives in light of the principle of legality, exploring their legal, constitutional, and economic aspects within the Brazilian tax system. Such incentives, as tax waivers intended to promote specific sectors or regions, must strictly comply with legality (CF, art. 150, I; CTN, art. 97) and the limits of tax authority (CF, arts. 155 and 156). Grants without legal support violate the federal pact and may be deemed unconstitutional (CF, art. 60, §4, I). Supreme Court jurisprudence, such as Binding Precedent 10, reinforces the requirement of a formal legislative process. In the economic sphere, incentives affect revenue and competition, being used in the tax war, with negative effects on federal balance and regional development.Additionally, it is noted that the absence of uniform criteria for granting these benefits deepens inequalities among federal entities. Moreover, the lack of transparency and effective institutional control mechanisms weakens the evaluation of results and the accountability of public managers. Thus, a more coordinated and efficient fiscal policy, consistent with the constitutional principles of legality, equality, and morality, is advocated.