National Confederation of Industry requests a review of exceptions in a report approved by the CCJ this Tuesday (7.nov)
A CNI (National Confederation of Industry) said in a note this Tuesday (7.Nov.2023) that it defends tax reform “no cumulative”, that is, without excess taxes. Earlier, the text of the proposal (PEC 45 of 2019) was approved by the Senate’s CCJ (Constitution and Justice Committee). “The consumer is always the one who pays this bill”stated the entity.
According to the confederation, the exceptions included in the rapporteur’s last negotiations in the Upper House, senator Eduardo Braga (MDB-AM), with congressmen will result in a higher tax for everyone. The organization further argues that “this excess will weigh, above all, on the pockets of lower-income Brazilians”. Here’s the complete of the statement (PDF – 148 kB).
To build an effective tax system, according to the CNI, “it is necessary that the selective tax does not apply to inputs and that the new tax on primary and semi-finished goods, which will burden the entire production chain, be eliminated”.
TEXT GOES TO PLENARY
The intention is to vote on the PEC in the plenary on the 4th (Nov 8) and 5th (Nov 9). The text needs to be analyzed in 2 rounds to be approved. At least 49 votes are required (three-fifths of the House’s composition). On November 2, the Minister of Finance, Fernando Haddad, said he expected more than 60 votes to approve the reform. The urgency of the proposal must be voted on this Tuesday (7.nov).
Braga’s opinion increased the value of the FDR (Regional Development Fund) from R$40 billion to R$60 billion. The change had the approval of the Ministry of Finance and was defended by the States. The excess R$20 billion will be distributed over 10 years from 2034.
The 1st version of the report was presented on October 25th. This Tuesday (7.nov), the day of voting at the CCJ, Braga presented a complement to the opinion with adjustments agreed with the Treasury. The rapporteur accepted more than 250 amendments of the 802 presented by senators. In recent days, he negotiated changes with the government to increase acceptance of the proposal among senators.
Read below other changes in relation to the text approved in the Chamber made by the rapporteur in the Senate:
- steering committee – collegiate takes the place of the Federative Council. It removes the possibility of a law initiative by the body. Discussion in the committee will be carried out by an absolute majority, plus representatives from States that correspond to 50% of the population, in addition to an absolute majority of municipalities;
- income insurance – rises from the 3% predicted by the Chamber to 5%;
- selective tax – weapons and ammunition may be taxed by the so-called “sin tax”;
- the electricity and telecommunications sectors were left out of the selective tax;
- specific regime for sectors – fuel rates will be defined by Resolution of the Federal Senate;
- differentiated rates (60% reduction) – public road and subway transport, national artistic, cultural, journalistic and audiovisual productions, sporting activities and institutional communication; food intended for human consumption, personal hygiene and cleaning products consumed by low-income families;
- intermediate tax rate (30%) – to provide regulated professions services;
- keeps state funds until December 31, 2032;
- extend benefits for the automotive sector until the end of 2032;
- independent professionals – will have a lower tax rate;
- ITCMD – the Causa Mortis and Donation Transmission Tax, which is levied on inheritances, will have a progressive rate and defined in a complementary law.
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