The rapporteur of the Income Tax project, Celso Sabino (PSDB-PA), will propose an increase from 4% to 5.5% in the CFEM rate, financial compensation for the exploitation of mineral resources. The opinion will propose that all CFEM collection be for states and municipalities. Today 10% stay with the Union and the rest is divided among the other entities.
Sabino said that this is a federal measure that will meet the wishes of many states and municipalities. The collection of these resources and the inspection of payment of these resources will pass to the state finance secretariats.
“The big mining companies have been showing high profits and a big company here, for example, in the second quarter of this year, announced a profit of R$ 40 billion and has a break-even price of ore of US$ 45 per ton, and the value of ore is US$ 200 per ton”, he said.
Sabino said that all companies in Brazil, including the large mining companies, will have a strong reduction in the tax burden with a reduction in the IRPF rate. “We understand how fair this measure is and a way to serve many states and municipalities”, he said.
The 1.5 percentage point increase will come together with a PEC that will be presented to process the bill together. The proposal, he said, will reduce inequality in municipalities in Brazil.
Today, of the ICMS collected by the States, 25% must be distributed to the municipalities. In this universe of 25%, 65% is based on the wealth that the municipality produces and the rest is defined by state law as population. The rapporteur said that he will propose that this distribution percentage from 65% be changed to 40%.
+ Learn about the effectiveness of each vaccine against Covid-19