Scheduled to go to the plenary of the Chamber of Deputies in July, the tax reform proposal was presented on Tuesday (6) by the WG rapporteur, Aguinaldo Ribeiro (PP-PB). The guidelines provide for the unification of state and federal taxes, such as IPI, Cofins, ICMS and others. Cashback for taxes from low-income families and taxation of luxury boats were also listed in the preliminary text, discussed based on PECs 45/2019 and 110/2019, which are being processed by the National Congress.
+ The idea is that the selective tax partially offsets the impact of the extinction of the IPI, says the rapporteur
“When we treat a sector differently and reduce a rate for a given sector, if this is not calibrated within the total tax burden, you can force the standard rate to be higher”, explained Ribeiro.
read the report here. Below, understand the main points of the change presented by the rapporteur:
Creation of double VAT
The Dual Value Added Tax (VAT), which will be called Tax on Goods and Consumption (IBS), will cover taxes on consumption. Five existing taxes will be unified, to be paid only once.
“In one part, the unification of federal taxes (PIS/COFINS/IPI) will be carried out and the entity responsible for collection and collection will be the Federal Union. The other part would have the collection by a committee formed by states and municipalities of a tax that would unify the ISS and ICMS”, explains Eduardo Natal, Master in Tax Law from PUC/SP and partner at the Natal & Manssur office.
The single rate was based on the premise that the services sector pays less taxes on consumption than the industry.
Standard rate for opening other rates for specific goods and services
In addition to VAT, the report proposes the creation of a rate focusing on exceptional cases.
“As examples of goods and services that must have this type of treatment, following the practices of several countries, we highlight some goods and services, such as those related to health, education, urban, semi-urban or metropolitan public transport and regional aviation, as well as rural production”, quotes the text.
cashback
Under the current text of PEC 45, art. 152-A, §§9 and 10 of the Federal Constitution establish that there will be a program of partial devolution of the tax on goods and services, through income transfer mechanisms, paid by low-income families, to be disciplined by Complementary Law. Compensation will be applied to income tax.
“PEC 110, in turn, amends art. 146 of the Constitution, to assign to the complementary law the competence to define the criteria and the way in which the return of taxes on goods and services acquired by low-income families can be carried out”, adds Natal. There are no specific definitions about values and return ceiling.
“The justification is that, with this model, the regressive effect of consumption taxation is significantly reduced, or even reversed, through a much less costly and more efficient system than the exemption of the basic food basket”, reinforces the attorney.
Tax for boats and jets
The text also proposes taxation, via IPVA – Tax on the ownership of motor vehicles – for the ownership of water and air vehicles, such as speedboats and jets.
Natal warns that commercial vehicles intended for fishing and public transport of passengers and cargo are excluded from the tax. It also provides that the tax becomes the responsibility of the municipalities.
Liquor and cigarette tax
The proposal suggests creating a selective tax for alcoholic beverages and tobacco products. The proposal includes item III, to art. 154 of the Federal Constitution, which provides for the supplementary tax powers of the Union.
The item provides that the Union may institute: “selective taxes, with extrafiscal purposes, intended to discourage the consumption of certain goods, services or rights.”.
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