Regulating Tax Reform will require between three and five laws, says Appy – 11/16/2023 – Market

The extraordinary secretary for Tax Reform at the Ministry of Finance, Bernard Appy, said that between three and five laws will be needed to regulate the changes promoted by the project.

“The most important law will define the rules for the federal tax and the tax for states and municipalities, they will be the same rules”, said Appy in his participation in the Bradesco CEO Forum, this Thursday morning (16).

Another law will regulate the management committee for taxes collected. The rest, which can reach three, will deal with other points.

“What to do with the accumulated credits? We can put this in a law or make one for that”, explained the secretary.

The Tax Reform is being analyzed in the Chamber of Deputies after the text approved in the House was changed in the Federal Senate, with the expansion of exceptions to categories and activities.

Appy gave a “grade 7” to the text presented by rapporteur Eduardo Braga (MDB-AM) before the changes made in the Senate plenary.

Less than two hours before voting on the text in the first round, Braga decided to accept new amendments that further expanded the list of exceptions to the new tax system.

A new opinion included the events sector in the reduced rate (with a 60% discount compared to the standard) and allowed the creation of specific regimes for the circular economy sector (recycling) and operations with microgeneration and distributed minigeneration of electricity (the reaching solar panels and farms).

The Tax Reform unifies five taxes on consumption, bringing Brazil closer to the turning point for a system already adopted in other countries that promises simplification, less conflicts and the end of cascading taxes on companies and consumers.

In his participation in the Bradesco CEO Forum, Appy also spoke about the ceiling for federal revenue as a percentage of GDP

He clarified that the device, included by Braga, limits collection only during the transition period (2026 to 2032).

“[Depois disso] you will have the possibility to manage rates and increase [a alíquota] if necessary, with a law. What is defined is that during the transition there will not be any,” he said.