“The objective is exactly that, with the expansion of the taxpayer base, we can have a more reasonable rate”, states the minister
The Minister of Finance, Fernando Haddadsaid this Wednesday (April 24, 2024) that the tax reform will have a system “completely digital”. In an interview with journalists, he stated that the measure will ensure a lower rate for new taxes.
“The objective is exactly that, with the expansion of the taxpayer base, we can have a more reasonable rate. Today, our rate is around 34%. This is the rate paid in Brazil. We are sure that, if we have a digital system, which prevents evasion, prevents fraud, this rate can be reduced. Even with the exceptionalities that the constitutional amendment brought and that the complementary law will regulate”declared in the Green Room of the Chamber.
Watch (1min22s):
The statement was given after having delivered it to the President of the House, Arthur Lira (PP-AL), the 1st ordinary tax regulation bill.
The minister once again stated that the reform could have an impact on GDP (Gross Domestic Product) growth of 10% to 20% due to the “Efficiency gain”.
LOWER RATE
During the interview, the extraordinary secretary for Tax Reform, Bernard Appy, said that the average dual VAT (Value Added Tax) rate will be 26.5%. The economist stated that the estimate of new taxes is “25.7% and 27.3%”.
“The estimate is very close to what was previously […] I would say the reference is the average. As the minister said, the expectation is that it will be even lower”, said in the Green Room of the Chamber.
Haddad, in turn, stated that “that’s what the simulation indicates”. The government decided to forward 2 complementary bills and 1 ordinary bill to the National Congress.
The 1st text, which deals with IBS (Tax on Goods and Services) and CBS (Contribution on Goods and Services) should enter the Chamber's system this Wednesday (Apr. 24). Fernando Haddad said that “the big one” of regulation is in this text.
DELIVERY DELAY
The tax regulations were delivered late. The complementary bills were expected to be sent to the Legislature by April 15.
Haddad traveled to Washington, United States, for a G20 meetingthe group of the 20 largest economies in the world. The economic team said that the texts would be with the deputies even with the trip, which was not done.
According to the Power360when shipping was still estimated for April 15th, the Treasury's perception was that it was not Haddad's profile to deliver the texts in person. The minister himself said that the projects could be carried out even during his trip.
The complementary bills will address:
- specifications common to IBS (Goods and Services Tax) and CBS (Contribution on Goods and Services) – will have definitions of all specific and differentiated federal, state and municipal tax regimes. It also talks about the selective tax;
- IBS-only specifications – will define the format of the tax management committee. Addresses the transition from the current ICMS (Tax on the Circulation of Goods and Services) to the new rate.
Only the 1st document is in the hands of Congress this Wednesday (April 24) or in the days that follow. It should have around 300 pages with 500 articles.
The 3rd text – in ordinary law format – must detail how the transfer of resources to the Regional Development Fund will be made as compensation for tax benefits. It's also for a second moment.
#Digital #system #reform #ensures #taxes #Haddad