Eduardo Braga celebrates the promulgation of tax reform

Congress

Senator Eduardo assesses that the reform approved by the Chamber will bring economic growth to the country

Brasilia DF) – On the eve of the promulgation of the tax reform, which will take place this Wednesday (20) in a session of the National Congress scheduled for 3 pm, senator Eduardo Braga (MDB) celebrated the delivery to Brazilians of the new consumption tax system, which should usher in a new era of sustainable economic and social growth for Brazil.

“This is the first tax reform in full democracy. And in democracy, the good thing is what can be approved. The text may not be ideal for experts, but it is possible in democracy”,

observed.

If at first the tax burden does not fall with the reform, Braga highlights that the number of taxes will be reduced and mentioned the lock that was included in the text to stop further increases.

“There is a reduction in the number of taxes, there is a simplification, more transparency, legal security, in addition to non-cumulative activity for the industrial sector and for exports, which will give a lot of competitiveness to our industry, so that the Brazilian industrial product returns to have an international market, which will generate many jobs in Brazil. I think it is a reform that will ensure that Brazil has sustainable economic and social development, with long-lasting employment and income generation”,

celebrated.

And he added: “I think that not only the reduction of the tax burden, which guarantees the neutrality of our reform, but also the issue of legal security for those whose acquired rights are assured, is a security for investors and will bring greater optimism to the business environment. business*”.

The long transition period for the implementation of changes in the consumption tax system, according to Braga, was what made the reform possible. “This is one of the mechanisms that made it possible, in democracy, to approve the PEC, the transition period. Because it establishes a cushion for the states, which will have to adapt to this new system, which not only changes the collection of taxes from origin to destination, but changes the entire concept of tax incentives, which stops being fiscal and becomes to be budgetary. That’s why the size of the Social Development Fund was so important,” he highlighted.

Basic basket

Braga recalled the Senate’s initial proposal to maintain total tax exemption only for what was classified as the “basic basket to combat hunger”, which would be further reduced, and an extended basket with a reduced rate, which provided for ‘cashback’. ‘ for the most vulnerable portion of the population, but which ended up excluded from the text in the review carried out by the Chamber of Deputies last week. “This would have a very important impact on the global VAT rate, but we respect the opinion of the Chamber, of the bicameral system and it was what was possible given the reform we want,” he stated.

*With information from consultancy

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