Opposition senators prepare changes in tax reform

Even before the House approved the tax reform on Thursday night (6), following tense negotiations with various parties involved and the release of parliamentary amendments in a record amount, independent and opposition senators were already preparing to take over the procedure of the Proposed Amendment to the Constitution (PEC) 45/2019, which will take place from August, right after the parliamentary recess. They already foresee a series of alterations in the text, which will lead to the PEC being returned to the deputies, for a new analysis. The entire process should be completed by December.

The mayor, Arthur Lira (PP-AL), hopes that the Senate will make “a more careful analysis of the tax reform” and correct the points considered controversial, to later submit the matter to the deputies. In an interview held this Friday morning (7), Lira stressed that the House of the Federation (Senate) will have more than enough time to make all the necessary changes, “in a more leisurely way and with a closer look”.

Senator Oriovisto Guimarães (Podemos-PR), one of the main critics of the PEC approved by the Chamber, believes that the Senate will carry out this meticulous review of the tax reform, seeking to make it “a legacy for Brazil and an understandable legislation for all sectors of society”. He pointed out that, as it is a constitutional amendment, the proposal will only have its definitive wording when both Houses of Congress reach full agreement.

In this sense, Oriovisto predicts that the Senate will analyze the text of “this, which is the worst reform among all possible ones”, with due “calm, caution and transparency”, taking advantage of the smaller number of parliamentarians involved. “This will allow for a less troubled analysis and the implementation of changes to a final design of the text”, he underlined. The senator had already been harshly criticizing PEC 45/2019, for considering it not daring in the effort to simplify taxes and for raising the burden on some sectors, such as retail and services, especially schools.

Opposition leader considers PEC a tributary Frankenstein

Rogério Marinho (PL-RN), opposition leader in the Senate, defended the postponement of the vote on the reform by the Chamber or, otherwise, its complete rejection. He now hopes that the Senate will have more time to evaluate the text and “exercise the common sense” that the Chamber lacked. For Marinho, the version approved in the House became a “tax Frankenstein” due to the rush in the vote and the lack of careful analysis and clear data from the Revenue Service.

Flavio Bolsonaro (PL-RJ) recalled that reform has always been one of the flags of his father’s government, former president Jair Bolsonaro (PL), but criticized the version approved by the Chamber for indicating an increase in the tax burden. Senator Marcos Rogério (PL-RO) also took a stand against the text approved by the deputies, claiming that it overloads taxpayers and leaves mayors in a difficult situation.

Still in the opposition camp, Carlos Portinho (PL-RJ) regretted that the PEC was voted quickly and without due “analyses, impact studies and projections”. He admits that the productive sectors, states and city halls may have been assisted, but he does not know if consumers, taxpayers, citizens and voters were also assisted.

Senators celebrate approval in the House, but make reservations

Mauro Carvalho Junior (União-MT), who recently took over as an alternate for Senator Wellington Fagundes (PL-MT) due to a medical license, also criticized the text of the tax reform for considering that it taxes the small ones and relieves the big ones. He supports the reform, but believes it needs to be balanced between producer states and consumer states.

The leader of the MDB in the Senate, Eduardo Braga (AM), had already been working for the temporary maintenance of the benefits granted to the Manaus Free Trade Zone, something that must be maintained by the Senate. The leader of the government in Congress, Senator Randolfe Rodrigues (Rede-AP), called the reform “a victory for Brazil in favor of future generations”.

Alessandro Vieira (MDB-SE) considered the approval of the tax reform in the Chamber a “historic step for Brazil”, after decades of discussion. For him, the Senate’s mission now is to review the text “with special attention to respect for the federative pact and the promotion of development associated with the reduction of inequalities”, he said.

Marcelo Castro (MDB-PI) saw the reform as a chance to “make tax evasion more difficult and put an end to injustices”. Senator Ana Paula Lobato (PSB-MA), in turn, saw the proposal as an opportunity to simplify and balance the tax system, allowing Brazilians to pay less taxes and the country to grow again.