Minister of Finance says that the measures to restore the tax waiver will be published by Friday in the bill report that goes to the Senate
The Minister of Finance, Fernando Haddad, said this Tuesday (May 21, 2024) that the taxation of imported goods up to US$50 will not be one of the measures to compensate for the gradual end of the payroll tax exemption for 17 sectors of the economy.
According to the minister, the amount that the government would receive from taxing international remittances “it’s much smaller” than the tax waiver with the exemption. Haddad spoke to journalists at his ministry’s headquarters in Brasília.
In July 2023, the Federal Revenue estimated that the impact of the exemption from imported taxes up to US$50 would be R$6.5 billion in 2024. The loss from payroll tax relief in the 17 sectors is estimated at R$15.8 billion for the year by the Ministry of Finance.
“The compensatory measures are already being sent to the Civil House”said Haddad.
The minister stated that they should be made public on Thursday (May 24) or Friday (May 25) in the report that will be sent to the Senate by Jacques Wagner (PT-BA), leader of the Government in the Upper House.
The PT senator had already said that the measures should come out during this period. Therefore, the vote would only be held for the following week.
The government still wants to address payroll tax relief for sectors and municipalities in a single PL (bill), presented on May 15 by the senator Efraim Filho (Brazil-PB Union).
The possible end of the tax benefit was once again debated in Congress because the rapporteur of the bill establishing the Mover program, federal deputy Attila Lira (PP-PI), added the end of tax exemption to the text of the opinion he delivered to the Chamber.
However, there is still no agreement on the maintenance of this section. The expectation is that it will be voted on on Wednesday (May 22).
TAX REFORM
Haddad said that the 2nd complementary bill regulating tax reform must be delivered to Congress by May 29, 1 day before the Corpus Christi holiday.
“It should be before the holiday, probably”he told journalists.
In total, there will be 3 texts: 2 complementary bills It is 1 ordinary bill.
The supplements will cover:
- the specifications common to IBS (Goods and Services Tax) and CBS (Contribution on Goods and Services) – this is already in the hands of Congress. It has 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.
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 is also for a second moment.
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