Tax reform: the Senate discusses regulation with the challenge of avoiding a new increase in the rate

The changes to the project will have to be evaluated by the Chamber, with the final say on the proposal, which according to experts reduces the room for maneuver of senators in making changes to the text.

BRASILIA – After being approved in mid-July in the HouseTHE Senate the bill regulating the tax reform. Among the senators there is certainty that there will be changes to the text, but from the interpretation of the proposal by the rapporteur, Eduardo Braga (MDB-AM), is that there is less room for maneuver for changes in the Chamber, since the final version of the proposal will be up to the Chamber of Deputies, with the possibility of vetoes by the President Luiz Inácio Lula da Silva.

Braga then said that it will be necessary to negotiate with the leaders of the House and the Executive before the senators approve the changes to the text in the Chamber. Among the rapporteur’s main challenges, according to tax experts, is to prevent new sectors and products from entering regimes with reduced rates, to avoid an increase in the so-called “standard tax rate”.

“It is necessary to seek the consent of the Chamber in advance, under penalty of the risk that the measures will not be accepted by the Chamber and will not even reach the Executive”, said the rapporteur during the presentation of the work plan for the elaboration last week.

One of the points of the PEC approved last year is that the tax pressure will be maintained, and one of the senator’s bets is that the reform will be able to reduce tax evasion in the country. With more taxpayers paying taxes, the expectation is this l The normal VAT rate may be lower than the values ​​currently calculated.

Source: Terra

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