Tax Reform: Treasury Expects Regulation to Be Completed This Year

The expectation is that by the end of the year the complementary laws will be approved in the Chamber and the Senate and the reform will enter a new phase, says Daniel Loria, of the Extraordinary Secretariat for Reform.

BRASÍLIA – The Director of the Programs of the Extraordinary Secretariat of the Tax reform of the Ministry of Finance, Daniel Loria, declared on Tuesday 20, that the government is working on the scenario of the final approval of the regulation on tax reform to Congress by the end of this year. Once that phase is complete, work will be done on formatting the rules and operating system.

“We are working towards final approval by the end of the year, in both chambers. We imagine that by the end of the year the complementary laws will be approved and then we will enter into an agreement. new phase of tax reform which will be the regulation of the regulation. We are, for the moment, in the complementary law, we are not yet in the actual regulation, much less in the operating system. We are working very hard to get this project off the ground”, he said during a conference on the next steps of the tax reform at an event organized by BTG Pactual, in São Paulo.

He stressed that a “brutal” simplification of the tax system is expected, with a reduction in compliance costs for businesses and litigation. “Reducing compliance costs, increasing economic efficiency, all this promotes economic growth. Tax reform increases productivity with a consequent increase in economic growth in the medium and long term,” he said.

When will the reform come into force?

Loria recalls that the transition to tax reform will take ten years. “We were so held hostage by our complex tax system that we were forced into a long transition period. If it were shorter, the federal government would have to pay a much higher bill than it will already pay with the final tax benefit of the compensation funds, the Regional Development Fund and others,” he said. He believes that this period will be delicate for businesses, which will have to bear higher adjustment costs during the coexistence of the two systems.

Source: Terra

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