Chamber approves MP that reduces tax on trips abroad – 02/14/2023 – Market

The plenary of the Chamber of Deputies approved this Tuesday (14), in a symbolic vote, a provisional measure that reduces the rates of income tax withheld at source for payments related to trips by Brazilians abroad.

The MP was edited by former President Jair Bolsonaro (PL) in September 2022. According to the text, the reduction applies to payments made to individuals or companies located abroad to cover personal expenses with international travel, until the limit of R$ 20 thousand per month.

The tax benefit applies to expenses with “tourism, business, service or training trips or on official missions”, according to the text of the measure, which seeks to favor national companies that close packages for trips abroad.

Despite having been edited by the Bolsonaro government, the proposal had the support of Luiz Inácio Lula da Silva’s (PT) base in the Chamber for its approval. The measure goes to the Senate.

The MP provides for a reduction in the rate from 25% to 6% in 2023 and 2024. From 2025 there will be an increase of one percentage point each year, reaching 9% in 2027.

In the statement of reasons at the time of issuing the MP, the government justified the initiative by stating that it would contribute to the resumption of the Brazilian tourism sector “and to the survival of tourist service providers, after the Covid-19 pandemic”.

With the approval, the text goes to the Senate for evaluation. The measure must be approved by March 1 in order not to lose its validity.

Deputy Pedro Paulo (PSD-RJ) was designated MP rapporteur this Tuesday (14). According to him, the approval of the MP is a “measure to save national tourism”.

Paulo was even quoted to take over the Ministry of Tourism at the beginning of the Lula government, a position that was occupied by Daniela Carneiro (União -RJ).