Governors of the South and Southeast threaten to vote against tax reform

Governors from the South and Southeast threatened this Wednesday (8) to instruct their benches to vote against the tax reform due to the changes in the text. The representatives defended the postponement of the vote, which is being analyzed this afternoon by the Senate. Earlier, they participated in a meeting with the Minister of Finance, Fernando Haddad, in Brasília. The main criticism is that the text presented by the rapporteur, senator Eduardo Braga (MDB-AM), has changes that increase inequalities between the states of the North and Northeast in comparison with the states of the South and Southeast.

Participating in the meeting with Haddad were the governors of Rio Grande do Sul, Eduardo Leite (PSDB); from São Paulo, Tarcisio de Freitas (Republicans); from Rio de Janeiro, Claudio Castro (PL); from Santa Catarina, Jorginho Mello (SC); and the vice-governor of Minas Gerais, Mateus Simões (Novo). The governors are expected to release a joint note this Wednesday on tax reform.

“Let’s release a note positioning ourselves. In addition to asking the senators who represent each state to vote against it, because this is going against our states. I speak on behalf of everyone, just not on behalf of Governor Renato Casagrande, from Espírito Santo, who did not come to this meeting… This new report increases the fiscal war in the states, divides the regions, this is very bad”, said Ratinho Junior.

For Eduardo Leite, “the reform was more palatable when it left the Chamber”. The governors criticize, mainly, the tax incentives given to automakers in the North, Northeast and Central-West regions; surcharges on products imported from outside Brazil and produced in the Manaus Free Trade Zone; and changes in the Federative Council, the newspaper reported The globe.

Claudio Castro pointed out that the Regional Development Fund (FDR) destined for the North and Northeast regions was increased in the Senate, from R$40 billion to R$60 billion. “We were not against the Regional Development Fund helping the regions. These [regiões] who are asking for new benefits are already covered in situations that the South and Southeast are not. The Chamber’s proposal was exactly to take away everyone’s incentives, but it would provide the Fund. They are wanting more benefits, said the governor of Rio.

“I also question the removal of power from the Federative Council, we discussed it a lot and the responsibility for tax policy is being transferred to the National Congress. The Council is being reduced to an operating committee. But it’s one thing to cede part of the states’ autonomy to a council where all governments will be participants. Another thing is to be defined by congressmen”, highlighted Leite.

Last month, the governors had already asked Braga to create a constitutional fund for the Southern states in the final text of the proposal, like those that already exist for the North, Northeast and Central-West regions. The objective, according to Leite, is to ensure a greater balance in the distribution of federal resources for the development of the regions. If senators approve the tax reform this Wednesday (8), the text will need to return to the Chamber of Deputies for a new analysis, as it has undergone changes in the Senate.