Haddad will send second phase of tax reform to Congress in August

Minister Fernando Haddad, of Finance, said this Monday (10) that the second phase of the tax reform, which will focus on income, will be sent to Congress even before the first phase has finished processing. The project that unifies five taxes to create the IVA (Value Added Tax) was approved last week in the Chamber of Deputies and still depends on analysis by the senators, on the return of the parliamentary recess.

The second phase of the reform, which will deal with taxation on income through the Income Tax, will be sent to Congress with the 2024 Budget, by the end of August, and will still depend on the approval of the new fiscal framework, which needs to be voted on. again by the House after having points of the text modified by the Senate.

“We have to complete the processing of the tax PEC in the Senate, but we are not going to wait for the end of the processing to send the second phase of the reform to Congress, it has to go along with the Budget. The budget piece will assume the approval of these measures by Congress. Otherwise, there will have to be a restriction on the budget part”, he said in an interview with the podcast The subjectof G1.

Among the points of attention in this second phase of the reform is the correction of the Income Tax table, which is currently R$ 2,112, but which President Luiz Inácio Lula da Silva (PT) promised, during the campaign, to increase to R$ 5 thousand.

Still in the interview, the minister stated that he will have a meeting with the president of the Senate, Rodrigo Pacheco (PSD-MG), this Tuesday (11), to discuss the progress of tax reform in the house.

Haddad confirmed that the government remains committed to meeting the goal of zeroing the primary deficit in 2024, and that it will present a set of laws with the Budget to, among other points, discipline tax actions that the Union has already won in court.

The budget piece, he says, will be forwarded with “fiscal adjustment laws, especially tax spending cuts, among which what has already been pacified in the courts”. Among those that are already being discussed is the return of the “quality vote” to the Administrative Council of Tax Appeals (Carf), which will also be analyzed by the senators upon the return of the parliamentary recess, and a last-minute amendment placed in the project that was dubbed “Transaction 2.0”, with new payment conditions for companies that owe taxes to the Union.