A section that favored entities that had higher revenue from 2024 to 2028 was removed; possibility had led states to announce tax increases
The tax reform approved on Friday (Dec 15, 2023) in the Chamber of Deputies left out the rule for dividing the future IBS (Goods and Services Tax) with the States according to revenue. The excerpt, included in the text approved by the Senate in November, was resisted by deputies and governors and ended up being removed from the PEC (Proposed Amendment to the Constitution).
In the previous text, the transition rule brought the possibility of favoring federative entities that had greater revenue from 2024 to 2028; since the collection of each one would be considered to calculate the division of IBS, a new tax that will be created to replace the current ICMS (Tax on Circulation of Goods and Services) and ISS (Tax on Services).
The tax reform rapporteur in the Chamber, deputy Aguinaldo Ribeiro (PP-PB), had already signaled that it intended to remove this part.
It was established in the PEC that the period of consideration for calculating the sharing of IBS with entities will be proposed via Complementary Law – a more difficult project to be approved, as it requires an absolute majority in Congress (at least 257 votes in the Chamber and 41 votes in the Senate ).
The possibility of considering the collection from 2024 to 2028 caused several States to announce an increase in the tax burden starting next year, fearing that they would be harmed.
At least 21 States and the Federal District raised the ICMS rate before the approval of the consumption tax reform.
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