Government will postpone one of the tax reform regulation projects | Economy

The government will postpone sending one of the complementary bills (PLC) that regulate tax reform to Congress, Finance Minister Fernando Haddad announced on Monday night (22). Due to lack of time, the PLC that deals with the Goods and Services Tax Management Committee (IBS) and administrative issues should be sent next week.

The Steering Committee will be a body representing states and municipalities that will be responsible for setting the IBS rates, a tax to be administered by local governments. The project that deals with the subject is simpler than the text to be sent this week, which will cover the entire regulation of all taxes on consumption, informed Haddad, will have almost 200 pages and should be sent this Wednesday (24).

Originally, the two projects were scheduled to be sent this Monday. However, the Civil House, said Haddad, requested last-minute adjustments on two points that were discussed late this Monday afternoon between the Minister of Finance and the Civil House, Rui Costa, and President Luiz Inácio Lula da Silva.

“We closed with the president (Lula). There is no more to do with it, now it is manual work to complete the text with more than 150 pages, almost 200. Now the most robust project is underway”, declared Haddad. The minister did not detail the last two points that would need adjustment. He just said that there would be “details” about products with zero rate, reduced rate (to 40% of the full rate) and full rate.

The project to be sent tomorrow includes the IBS regulation; the Contribution on Goods and Services (CBS), a federal tax on consumption; the Selective Tax, which will apply to products that pose a risk to health and the environment; and the Tax on Industrialized Products (IPI), which will be levied on goods competing with those produced in the Manaus Free Trade Zone.

The most controversial topics are the exemption from the basic food basket and the list of products that will be charged the Selective Tax. The reform approved last year left it up to the complementary bill to decide whether, for example, processed foods rich in sugar will be charged the tax.

Rapporteur

Regarding the report of the text, Haddad said that he received from the president of the Senate, Rodrigo Pacheco, the indication that senator Eduardo Braga (MDB-AM) will report the first complementary tax reform bill. Braga was the rapporteur of the proposed amendment to the Constitution in the Senate.

Haddad stated that he only did not send the main complementary bill last week because of his trip to the United States. Last week, the minister went to Washington for meetings of the G20 (group of the 20 largest economies on the planet, plus the European Union and the African Union), the International Monetary Fund (IMF) and the World Bank.

According to Haddad, the president of the Chamber of Deputies, Arthur Lira, asked for the delivery of the first complementary bill this Wednesday. The minister said he was optimistic about the regulation of tax reform later this year.

“I don’t believe I won’t vote on (the regulation) this year. It would even be unfair to presidents Lira and Pacheco if this reform did not end in their mandate (as presidents of the two legislative houses)”, he highlighted.

Persian

After returning from Palácio do Planalto, Haddad met with leaders from the allied base in the Chamber of Deputies to discuss the bill that restricts the Emergency Program for the Resumption of the Services Sector (Perse). According to the minister, the proposal can be voted on this Tuesday (23), if the meeting of leaders in the Chamber, scheduled for 12 pm, goes well.

According to the minister, there is consensus on the main points of the Perse bill: the limitation of tax waivers at R$15 billion until 2026 and a fine-tooth comb in the qualification of companies to receive the benefit. Perse was created to help companies in the events sector affected by the covid-19 pandemic.

“We have to be clear that we are benefiting those who need it, because, the way it is open, it is leaving room (for deviations). This is not what Perse should be used for, opening the door to organized crime or to anyone who has not been harmed by the pandemic”, highlighted Haddad.

The minister said that, if there is no impediment on the part of the deputies, he intends to participate in the meeting of leaders in the Chamber. In reference to a speech by President Lula, who this Monday told Haddad to read fewer books and talk to parliamentarians, the minister joked: “I forgot my books in São Paulo and I’m free (to negotiate with the leaders).”