The Extraordinary Secretary for Tax Reform at the Ministry of Finance, Bernard Appy, said on Friday, the 26th, that the government expects to carry out the tax reform of direct taxes, which includes taxes on income, in the second half of this year.
“Direct taxes will be the target of a second phase of tax reform, in the second half of the year,” he said, in an interview with CNN Brazil. Appy said that there is still no closed proposal in the government, and that therefore, there are no further details, but that the north will correct what he called “distortions”, with the poorest sections of the population paying more taxes than the richest .
In this first half, the government is working on the reform of indirect taxes, such as PIS/Cofins, ICMS and ISS, which should be replaced by the Value Added Tax (VAT) with a dual character, one national and the other for states and municipalities.
The secretary reiterated that, at this moment, the government will keep the tax burden stable in relation to GDP. “In the short term, the country’s fiscal situation does not allow for a reduction in the tax burden, but in the long term, if Brazil grows, there must be room to reduce the burden.”
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