Extraordinary Secretary of Tax Reform says that a higher rate on pollutants would come from IBS or CBS
The Special Secretary for Tax Reform, bernard appy, said that taxation on carbon should come within the new tax that will replace another 5, if the change on the collection of indirect taxes is approved in the National Congress. The statement was given in an interview with the Power360 on Thursday (30.Mar.2023).
“I think it’s easier to do it within the IBS itself [Imposto sobre Bens e Serviços] or from CBS [Contribuição sobre Bens e Serviços] than doing it through other mechanisms”he declared.
Watch (42min53s):
if the PEC (Proposed Amendment to the Constitution) 45 of 2019, the House prospers, IBS would be in charge of taxing carbon. If PEC 110 of 2019 prevails, CBS would play that role.
Appy emphasized that the government defends the measure aimed at taxing polluting activities, but “how to do it is still under discussion”. If the proposal moves forward, fossil fuels would be among the products charged.
“The tax reform already provides for the taxation of fuels to be made per liter in a nationally uniform and single-phase way – to tax at the exit of the refinery or on importation. With this model, you can have a higher rate for fossil fuels and a lower rate for renewables without generating a cost problem for Brazilian industry because it will give full credit when using fuel”he said.
According to Appy, the industry intends that the taxation be made from a selective tax. The secretary highlighted that the forecast of differentiating fossil and renewable fuels “It’s already in the Constitution”.
READ TOO
#easier #tax #carbon #tax #Appy
