Text was presented this Thursday (June 22) by the rapporteur in the Chamber, Aguinaldo Ribeiro (PP-PB) and proposes a change in taxes
The tax reform must be voted by the Chamber of Deputies in the first week of July. The way Brazilians pay taxes will change, if the proposal on the subject is approved by the National Congress. This Thursday (June 22, 2023), the rapporteur for the proposal at Casa Baixa, Aguinaldo Ribeiro (PP-PB), presented the project with the proposed changes in taxation.
Among the guidelines presented by the rapporteur are the dual VAT (Value Added Tax) for goods and services, with federal and state/municipal taxation; and the change in tax collection, from origin to destination.
DUAL VAT
The report proposes that IPI (Tax on Industrialized Products), PIS (Social Integration Program), Cofins (Contribution for the Financing of Social Security), ICMS (Tax on Circulation of Goods and Services) and ISS (Tax on Services) are simplified in the dual IVA for goods and services, with a federal taxation, which would unify IPI, PIS and Cofins, and another state/municipal, which would unify ICMS and ISS.
The proposal establishes the creation of the federal tax CBS (Contribution on Goods and Services) and the IBS (Tax on Goods and Services) divided between states and municipalities. There is also an indication of a federal selective tax on items harmful to health and the environment.
TAXES
The text proposes a standard rate, another 50% lower and, in some cases, exemptions.
The project establishes a reduction of up to 50% in the rates for goods and services in the following segments:
- health services;
- education services;
- medical devices;
- public transportation;
- medicines;
- agricultural, fishing, forestry and plant extractive products in natura;
- agricultural inputs, food intended for human consumption and personal hygiene products;
- national artistic and cultural activities.
There is also a proposal to zero taxes on some medicines and the possibility of zeroing taxes on public transport as well.
FUNDS
The rapporteur also proposed the creation of a fund with the aim of reducing regional inequalities and encouraging the maintenance of enterprises in less developed regions, which will no longer have tax benefits from extinct taxes.
In order to avoid the loss of collection, there will be a transition period in the division of revenues. There is also a forecast that benefits for companies will be financed with a regional development fund.
The text corroborates the government’s desire and proposes R$ 40 billion for the Regional Development Fund. Earlier, governors claimed in the meeting with the president of the Chamber, Arthur Lira (PP-AL), R$ 75 billion at the end of the transition period, defined for the year 2029.
The government’s proposal is to start the transition in 2025 with R$ 8.25 billion and increase year by year up to R$ 40 billion in 2029. At this point, politicians will try to find a compromise to approve the text.
STAY OUT
The project excludes Simples Nacional and the Manaus Free Trade Zone from the reform and maintains tax incentives. There will be special rule to maintain the benefit.
In the case of micro and small companies of Simples Nacional, the entrepreneur will be able to choose between remaining in the regime or adopting the standard VAT.
There is also provision for other exceptions, such as in higher education education services, such as the pronounce (University for All Program), for example.
CASHBACK
Another measure present in the text is the “cashback” to low-income people, in order to reimburse expenses with the tax on basic products, to be defined in the complementary law.
DEADLINES
There will be a transition period for the end of collecting old taxes. From 2026 to 2027, there will be the implementation of the federal tax (CBS). From 2029 to 2032, transition to IBS for states and municipalities. There is a proposal for the full implementation of the new model in 2033.
FEDERATIVE COUNCIL
The text proposes the creation of a Federative Council to manage the collected resources, with the participation of the Union, States and municipalities. The agency would be responsible for receiving the taxes collected and distributing them.
IPVA FOR AQUATIC AND AIR
The proposal talks about charging IPVA for water and air vehicles, for private and recreational use.
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