Tax reform working group could be expanded to include representatives from the South

The parliamentarian reveals that the situation has already been discussed with the president of the Chamber of Deputies, Arthur Lira (PP-AL). “I think he is evaluating the possibility of increasing by one or two members to contemplate the South”, says the deputy. Ribeiro recalls that, when the working group was constituted by Lira, it was determined that 12 parties would nominate members to participate.
The state governor, on the other hand, emphasizes his dissatisfaction with the current scenario. “I, specifically, is uncomfortable with the fact that a specific working group established in the Chamber of Deputies disregards the southern region of Brazil”, says Leite. He reinforces that it is the only region that is not present in this debate, and Amazonas, for example, has three parliamentarians integrating the group. O Governor says he is in favor of tax reform and that there is conviction that the economic gains, due to the greater expected productivity and reduction in the complexity of taxation, outweigh any possible tax or financial loss.
Leite adds that he intends to meet with other governors, both within the scope of the Southern Development and Integration Council (Codesul – of which he is president) and the South and Southeast Integration Consortium (Cosud), to analyze what is defined in the report of the tax reform and make contributions. The presentation of the working group’s report, according to deputy Aguinaldo Ribeiro, will take place on May 16th. The forwarding of the document that will go to the plenary of the Chamber will still depend on the definition of President Arthur Lira and party leaders.
Ribeiro and Leite participated this Monday (17) in the lunch meeting It’s on the Special Table carried out by Federasul. The meeting also had representatives from entities such as Fecomércio-RS, Fiergs, Farsul and Sescon RS. During the event, members of these institutions raised topics such as the need not to tax production, investments and exports, the fear that the reform could lead to an increase in the tax burden and the focus on simplification and transparency in tax collection.
According to Ribeiro, if he can, he will place as the first article of the text of the reform that “there will be no increase in the tax burden”. He says that the intention is not to burden the country. The idea of ​​the reform is to replace the ICMS (state), ISS (municipal), IPI, PIS and Cofins (federal) taxes, which are levied on consumption, by a single Value Added Tax (VAT). The deputy informs that of the 195 countries that make up the United Nations (UN), 174 have adopted the VAT.
He comments that it is necessary to change the culture of Brazil to have a rudimentary taxation that represents around 80% of the cost-Country, which is around R$ 1.5 trillion a year. Asked whether the issue of a selective tax for products such as cigarettes and beverages would be included in his report, Ribeiro says that the discussion being held will deepen how these articles will be with the implementation of the VAT. “But, traditionally, there is already a differentiated load on these products today”, he points out.