See what should change in the text of the Tax Reform – 10/23/2023 – What tax is this

The Senate Tax Reform rapporteur, Eduardo Braga (MDB-AM), must present a new version of the proposal by Wednesday (25).

The main new features are:

• Limit for the tax burden on consumption in % of GDP
• New reduced rate for professionals in regulated professions
• New text to guarantee exemption from machinery and equipment
• Transformation of the Federative Council of states and municipalities into a management committee
• Limitations on Selective Tax on items harmful to the environment and health
• Selective Tax in the mining and fossil fuel sectors
• Prohibits new state contributions on basic products (article 19)
• New value and rules for the Regional Development Fund
• Use of Cide to maintain the Manaus Free Trade Zone

What’s also on the agenda:

• Benefit for public concessions, such as sanitation, energy and highways
• Union participation in the IBS management committee (for standardization issues)
• Dispute resolution system: define judicial jurisdiction for new taxes
• Reduction in the federative transition period

The reduced rate for self-employed professionals may have little effect in practice. It does not affect those who are in Simples, nor those who work for the presumed profit when they provide services to another company. See report on the subject here.

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