The House begins discussions on tax reform to vote on the proposal on Thursday

The Chamber of Deputies started the debate on tax reform in the plenary this Wednesday, a phase that precedes the voting process scheduled by the Speaker of the Chamber, Arthur Lira (PP-AL), for Thursday.

Lira, the economic team and the rapporteur of the proposal, Congressman Aguinaldo Ribeiro (PP-PB), spent the day in meetings with benches, governors and others involved in the changes in the tax system.

Earlier, Lira expressed in an interview with GloboNews the expectation that the tax reform would have its discussion started this Wednesday so that it could be voted on on Thursday.

“Our intention is, today, at the end of the afternoon, to start the discussion, finish the discussion today and tomorrow and, hopefully, with a vote in the first round on Thursday evening,” explained the Speaker of the Chamber.

A government source told Reuters the trend was for the House to actually start debating reform tonight, but considered that other agendas for the week remain on standby as some parties were still settling disputes with the Planalto this Wednesday.

After a day full of meetings and conversations, the rapporteur of the proposal, the deputy Aguinaldo Ribeiro (PP-PB), formally presented his opinion in the plenary.

The parliamentarian, who is trying to meet the deadlines set by Lira, said he had provided clarifications on the reform to various benches and did not rule out accepting suggestions offered by the governors, with whom he also met.

“We’ve listened a lot, we’ve talked a lot to get here,” said the deputy, adding he was willing to talk even more if needed.

Shortly before, the speaker had told reporters that he had had an “excellent” meeting with the governors of the south-east and that “we can converge with the other governors, with the municipalities, in order to have balance in governance”, he added.

After reading his opinion, Aguinaldo added that the written version did not yet include the latest agreements with the governors. According to him, a new version of the opinion will be presented with the adjustments, made with the governors, relating to the formation of the Federal Council, which will have the task of centralizing the collection of taxes, the exclusive contribution of the Union of 40 billion reais to the Region Development fund and resource distribution criteria.

Aguinaldo took the opportunity to thank the governor of São Paulo, Tarcísio de Freitas (Republicans): “This position was very important to also consolidate the position of other governors”, said the speaker.

The deputy also praised the work of the finance minister, Fernando Haddad, and of the extraordinary secretary for tax reform, Bernard Appy, who took “important decisions”.

“One of these was the exclusive contribution to the regional development fund where 40 billion are paid to states with a regional development character,” explained Aguinaldo.

“This point was also blocking tax reform and it was this point that was decisive for us to move forward.”

Being a Proposal to Amend the Constitution (PEC), the tax reform requires the favorable votes of 308 of the 513 deputies in two rounds of voting to be approved and then transmitted to the Senate, where it needs the endorsement of 49 deputies 81 senators, also ‘them in two ballots, to be approved and proceed to promulgation.

NATIONAL BASKETBALL

The rapporteur took the opportunity to announce that he had included the creation of a zero-rate basic national food basket in the proposal.

“So that no one invents a tax rate and invents that we will weigh the poor.”

The substitute presented this Wednesday evening by Aguinaldo envisages the extinction of the contribution to the Social Integration Program (PIS), the Contribution for the Financing of Social Security (Cofins), the Industrialized Products Tax (IPI), the Vehicle Tax of Goods and Services (ICMS) and Tax on Services (ISS).

In its place will be adopted the Goods and Services Levy (CBS), at the federal level, and the Goods and Services Tax (IBS), which is the responsibility of the states, the Federal District and the municipalities. A Selective Tax will also be adopted on products deemed harmful to health and the environment.

In the case of IBS, the administration of resources will be shared through a Federal Council, an entity that will be composed of states, Federal District and Municipalities, according to the written version formally presented this Wednesday. The text did not specify how the division of powers in the council will take place, limiting itself to recording the equality of votes.

“The creation of the Federal Council is necessary for powers that must be exercised uniformly at the national level, such as the administration of collection and the regulation of the tax”, Aguinaldo recorded in the opinion.

CARF

In the previous interview, the Speaker of the Chamber had also stated that the fact that the bill that returns to the government the tiebreaker vote on the decisions of the Administrative Council of Tax Appeals (CARF) is being drawn up urgently does not prevent before voting on tax reform.

The changes in the CARF, the last-level administrative appeal against the penalties imposed by the Federal Revenue Agency, are indicated by the government of President Luiz Inácio Lula da Silva as crucial for the new tax regime proposed by the government, but the issue, also singled out as a priority by Haddad, it has met with resistance.

Lira said he also hoped the changes to the CARF would be voted on by the House this week, but underscored the position that Brazil’s top priority right now is tax reform.

Regarding the proposal for a new fiscal framework, which is once again being appreciated by deputies after the changes in the Senate, Lira said it was essentially “pacified”, since deputies should focus only on the changes made by the senators.

According to the Speaker of the Chamber, the framework is the basis of the tax reform and of the changes in Carf that are relevant at the moment.

“After these two (tax reform and CARF), we will sit down quickly with the leaders to analyze and take the party’s position to keep or not the Senate text.”

Source: Terra

Rose

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