Read this Friday’s edition of the FolhaMercado newsletter (07) – 07/07/2023 – Market

ANDsta is the edition of newsletterr FolhaMercado this Friday (07). want to receive it from monday to Friday at 7 am In your email? Sign up below:

---

First step of tax reform

The Chamber took an important step this Thursday (6) to move forward with a discussion held for over 30 years and change a system created in the 1960s.

The basic text of the Tax Reform PEC was approved in the first round by 382 deputies – 308 were needed. There were 18 votes against and 3 abstentions. See how each deputy voted here.

• After the appreciation of the highlights, the text will be voted on in the second round in the Chamber. After that, the proposal goes to the Senate.

five points to understand the main text approved by the Chamber:

1 – What: the proposal provides for the merger of PIS, Cofins and IPI (federal taxes), ICMS (state) and ISS (municipal) into one IVA. Value Added Tax is used in 174 countries and we show you how it works here.

• A part of it will be administered by the government, with the CBS (Contribution on Goods and Services), and the other, by states and municipalities through the IBS (Tax on Goods and Services).

• A selective tax will also be created on goods and services considered harmful to health (such as cigarettes and alcohol) or the environment.

2 – When: Implementation begins in 2026, with a test rate of 0.9% for CBS and 0.1% for IBS. The following year, PIS and Cofins leave to make way for CBS.

• The transition to IBS will take longer, and state and municipal taxes will only cease to exist in 2033.

3 – What is the rate: not in the PEC. Although the standard charge is estimated at 25%, the rates for each tax will be defined later, in a supplementary law –which depends on fewer votes–, as they will depend on calculations made in conjunction with the Ministry of Finance.

In this case, other exceptions appear: reduced rate (equivalent to 40% of the full value) for some goods and services, such as health services, education, public transport, agricultural products and inputs, medicines, medical devices and artistic, cultural and journalistic productions.

4 – What changes: the reform predicts that the current tax burden on consumption will not increase. But it will be a game of lose and win, some will have a reduction, others will increase.

• An Ipea calculation shows that only the richest 10% will pay more, while the other 90% will have a lower burden.

• Fuel taxation, streaming, cashback… We have gathered here how the Tax Reform can affect different sectors and services.

5 – What remains to be defined: the regulation of everything that is being approved (rates, what goes into the basic basket, the excise tax…) will remain for 2024.

With the approval of this first phase of the PEC, the government wants to vote on the second one this year, that of the Income Tax. The discussion should include everything that concerns this world, including taxation of investments, dividends, etc.

other points worth mentioning:

The Federative Council, which will manage the IBS and was the subject of controversy among governors, will have greater power in the states of the South and Southeast than foreseen in the previous version of the text.

The reform generated disagreement between governor Tarcísio de Freitas (Republicanos-SP) and former president Jair Bolsonaro (PL), who was against the proposal, but whose party gave 20 votes in favor of approval.

---

The Differences Between Threads and Twitter

Shortly before Threads completed a day on the air, the network reached 30 million users – thanks to its sister platform, Instagram -, but it also exposed some problems, especially for those who are used to Twitter.

• There is an alternative: temporarily deactivating the account, which hides the profile and does not affect the Instagram account. See here how to do it.

what does not have in Threads that exists on Twitter:

↳ Window to show content only from those you follow. Those who accessed the Meta app must have noticed messages from users who are not on the list of followed profiles.

• Those responsible for Threads said that the followers feed feature “is on the list” of news for the network.

↳ “DMs”: it is not possible to send a private direct message to another user (like a “direct” on Instagram). The tool appears on Meta’s other most used networks (Facebook, Instagram and WhatsApp).

↳ Search by content: you can even search for other profiles, but not search for words that appear in publications.

What’s in Threads that doesn’t exist on Twitter:

↳ A network that is not commanded by Elon Musk. The recent controversies involving the bird network under the billionaire may explain the rush at Meta to release Threads soon – and the existence of bugs or the lack of some features in the new network.

↳ Unlimited viewing of publications. Speaking of controversy, this was the most recent: the billionaire limited the amount of tweets that users can see per day. In the Meta network, this does not exist.

↳ Open social network? It’s not working yet, but Meta promised the feature that would make Threads interoperable with other open social networks like Mastodon.

• The idea is that users from different platforms can interact, similar to the email format (users from one provider can write to another).

More on the subject

• Analysis: The former editor of Interaction and Social Networks at Sheet Mateus Camilo lists five reasons why the new Meta network will not be successful.

---