Broker fears tax reform proposal will turn into Frankenstein

The impasses in the proposed constitutional amendment (PEC) of the consumer tax reform, which should go to the vote this Thursday (6), show that the lack of a parliamentary base takes its toll on the economic agenda, says the chief economist at Genial Investments, José Márcio Camargo.

“As the government does not have a solid parliamentary base in Congress, it has to negotiate on a case-by-case basis, with concessions for different groups. The Manaus Free Trade Zone, Simples and part of agriculture have already managed to stay outside the standard rate”, emphasizes Camargo.

According to him, the risk is that, in order to get the necessary votes for the approval of the reform, the project becomes a Frankenstein, and that a higher standard rate is necessary to maintain the tax burden.