Taxation that would raise R$ 10 billion to the government was dehydrated in Congress this Thursday (14th December)
The Minister of Finance, Fernando Haddadsaid this Thursday (Dec 14, 2023) that he will take measures “administrative” still in 2023 to compensate for revenue losses with JCP (interest on equity). He didn't mention which ones. According to Haddad, the approval of MP (provisional measure) 1,185, of ICMS (Tax on Circulation of Goods and Services) subsidies, did not reduce the estimated revenue of R$35 billion.
Asked about the dehydration of the rules that change JCP taxation, Haddad said that, since the beginning of discussions, the government understood that the text “needed improvement”. The minister said that he will adopt measures in 2023 to compensate for revenue losses.
“These are measures of a nature that do not pass through the National Congress. These are administrative measures”he said.
The change in the current JCP model was included in the MP text in a dehydrated form. Initially, the government wanted the end of the deductibility of interest on equity, which would yield R$10 billion to the public coffers in 2024, according to estimates from the Treasury. A bill on the subject was sent to Congress, but the proposal did not advance.
In the approved text, the rapporteur included obstacles in relation to the calculation of the JCP calculation base. There is still no forecast of how much will enter the Union's coffers with the new version of the proposal.
The rapporteur also reduced the period for reimbursement by the Union of uncompensated tax credits, from 48 to 24 months.
EXEMPTION AND TAX
Haddad said he will legalize the postponement of payroll tax relief for 17 sectors of the economy until 2027, which was vetoed by the president Luiz Inácio Lula da Silva (PT) and then authorized by Congress in a vote this Thursday (Dec 14). The minister stated that an alternative to the proposal would be approved after the approval of the tax reform.
According to Haddad, every effort is to have the reform approved by the Chamber. “What remains pending, and there was no agreement, does not prevent promulgation. It can enact what is common in both Houses. If there is a detail that can be decided with a little more time, it will not make the promulgation unfeasible and we will gain time to regulate the new constitutional amendment”he said.
Haddad declared that the enactment gives more time for the government and Congress to analyze complementary laws to the tax reform.
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