Coordinator of the tax reform says there is willingness to approve it in Congress

The coordinator of the tax reform working group in the National Congress, deputy Reginaldo Lopes (PT-MG), said this Saturday (10) that there is already a “policy alignment” to approve the bill that will replace five federal taxes, state and municipal taxes in just one with two rates.

According to the parliamentarian, the project will have the support of the Legislature and that there is already an understanding that the current model is “exhausted” and leads the country to lose competitiveness. According to Lopes, the proposal that aims to restructure the Brazilian tax system is not ideological or government.

“It is a reform of the Brazilian State and that, for the first time, there was an alignment of policy. There was an alignment of President Arthur Lira (PP-AL), who leads in the first semester in the Chamber of Deputies, with the President of the Senate, Rodrigo Pacheco (PSD-MG), who will lead this debate in the second semester, if President Lula understands which is a structuring measure for Brazil to become competitive again, to be able to export with added value, led by Minister Fernando Haddad [Fazenda]and a disposition of all federated entities, who realized that this model is exhausted”, he said in an interview with CNN Brasil.

The text by the tax reform rapporteur, federal deputy Aguinaldo Ribeiro (PP-PB), was presented this week with the forecast of replacing taxes such as PIS, Cofins, IPI, ICMS and ISS with the dual Value Added Tax (IVA), simplifying the system.

The reform also aims to combat tax disputes between states, which establish tax waivers to attract investment. However, this measure has been criticized by some units, who see the possibility of losing resources.

Lopes claims, however, that Haddad has been in dialogue with the governors for the Union to allocate resources to a Regional Development Fund to compensate for the losses.

The deputy also said that the expectation is that the text will be discussed in the Chamber of Deputies in the first week of July, before the parliamentary recess, and that discussions to meet all interests should take place until the vote.