By Carlos José Marques
The whole of Brazil waits anxiously and parliamentarians say they are rushing to approve a tax reform worthy of the name this academic year. It is a herculean task in the face of enormous challenges, pressures and requests of all kinds. The sea of exceptions at stake, the drawn-out negotiations and the back and forth of votes between the Senate and Chamber delay — and even compromise — the project. The federal states protest vehemently about what they allege is a deadly drain on resources in their respective tax collections. The extraordinary secretary for Tax Reform, Bernard Appy, says that there is no source of funding for a regional fund. The Manaus Free Trade Zone calls for special treatment to guarantee its survival and there is no consensus on even the most basic adjustments. The much-vaunted tax simplification, through the sum of taxes into a single tax (the decanted VAT) has already become almost a pipe dream. There are so many VAT categories that even the taxpayer will be confused. And what’s worse: according to calculations, the VAT rate can reach an incredible 27.5% — by far, the highest in the world. It is not possible to imagine, at this rate, that the load will actually decrease. Brazil is not really for amateurs. The Value Added Tax, which, in several countries, became the ideal formula, not least because it allows greater transparency about what is being charged, here it has been transformed into a patchwork. Everyone wants to get the upper hand, especially groups that have greater lobbying power over the legislature. Perhaps this is the main reason for decades of vain conversations about a fairer tax structure: no one gives in. Comsefaz (National Committee of Secretaries of Finance, Finance, Revenue or Taxation of the States and the Federal District), which represents the federative entities, wants R$80 billion in a compensation fund to agree to the changes. Amendments to the final project keep coming and it goes from house to house, from the Senate plenary to the Chamber, in search of an understanding that never arrives, under the perplexed eyes of the majority of final taxpayers who pay for everything and almost nothing. palpitate. It’s disappointing. Meanwhile, the taxation of large fortunes, which affects the pockets of those who can actually influence parliament, is not on the agenda. It’s almost a forbidden subject. Overall, the desired reform brings little good news for a carnival of bad surprises. The good thing is the unification provided for in the VAT. The fact, however, is that it will be “dual”. In other words: divided into two. One concentrating federal taxes and the other with state and municipal taxes. The way this works raises the most varied fears of confusion in the final calculation. There are people who will pay “half price” on charges, forming part of the exceptions block. For the crowd in the stands, the rigor of the full fare. It’s been more than 40 years of this back and forth, within a primordial subject. Legislators are trying to chart a new path for a country that lives with what is called a true tax madhouse. The time, investment and effort that is wasted trying to understand where so many of these charges come from is unbearable. Certainly, one way or another, this needs to change soon. There is no one who disagrees with this detail: the turnaround is urgent.
#Endless #reform