“This is an idea that was presented to us. We are analyzing”, says the Minister of Finance
The Minister of Finance, Fernando Haddadopened this Tuesday (13.jun.2023) the possibility that the transition time from ICMS (Tax on Circulation of Goods and Services) to IVA (Value Added Tax) within the tax reform is longer to reduce the impact of the benefits granted by the States from the tax.
“This is an idea that was presented to us. We are looking into it”said in an interview with journalists.
The report of the tax reform working group (full –596 KB) presented on Tuesday (6.jun) recommends that there be a “gradual change” for ICMS, that the tax benefits granted until 2032 from the tax “are respected and that the substitute defines, after discussion with the federal and state governments, the necessary format for compliance with this guideline”.
According to the PEC 110 of 2019, ICMS will take 7 years to be extinguished. The substitute presented by the Mixed Commission for Tax Reform, on May 12, 2021, speaks of up to 6 years for the end of the tax.
Haddad emphasized that the text of the PEC (Proposed Amendment to the Constitution) of tax reform “will be presented in the next few days”. At this 1st moment, the economic team focuses on changes in the collection of taxes on consumption.
The minister again defended the approval of the measure in Congress and criticized the tax system in force in the country: “We don’t want to create disruption. We want to transition to a robust regime, a transparent regime, a regime that works in more than 170 countries, Brazil is very behind”.
fiscal framework
Earlier, the minister met with the rapporteur for the new fiscal framework in the Senate, Omar Aziz (PSD-AM). He said he talked to the senator about “respect the work that the Chamber has done”.
“I think like this: the more respectful we are in relation to the work of the Senate, the closer the result of the Senate will be to that of the House. It’s what we want. We want this text not to be a government text. We want the text to be a rule that the country understands is better for the moment”, declared.
According to Haddad, it is necessary to go “talking with president Arthur Lira and with deputy [Cláudio Cajado, relator do texto na Câmara]respect the work he did”.
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