Senate approves request to accelerate voting on tax reform, which will begin this Wednesday

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Tax reform requires voting in two rounds, with the need for at least 49 votes in favor in both stages. Approved request eliminates the need for an extensive calendar, reducing discussion time between shifts. The Senate plenary approved this Tuesday (7) a request that, in practice, summarizes and accelerates the vote on tax reform, scheduled for this Wednesday (8) in plenary. The application does not require processing deadlines. The text has already been approved by the House’s Constitution and Justice Committee (CCJ). If it has the approval of the plenary, the proposal returns to the Chamber because senators made changes to the content of the matter. As it is a proposed amendment to the Constitution (PEC), the tax reform needs to be voted on in two rounds. Approval occurs if the project receives at least 49 favorable votes in both stages. The request to speed up the processing received 48 votes in favor (one less than required for PEC) and 24 against. The approved requirement eliminates the need for senators to comply with an extensive calendar: five sessions to discuss the proposal in the first round, in deliberative plenary meetings; after approval in the first round, a period of at least five working days is expected for voting in the second round; in the interval between one round and another, three sessions (ordinary deliberatives) of discussion The reform unifies five taxes through the dual Value Added Tax (VAT). Minister of Finance, Fernanda Haddad, predicts that the tax reform will modernize the Brazilian tax system. The new taxes will be charged at the final destination, where the good or service will be consumed, and no longer at the origin. This would help to combat the so-called “fiscal war”, the name given to the dispute between states so that companies can set up shop in their territories. The text creates a national basic food basket tax-free. Under the proposal, the rates provided for federal, state and municipal VAT will be reduced to zero for these products. The project opens the possibility of future creation, through a complementary law, of the so-called “cashback”. The mechanism provides for the return of taxes to a specific audience with the aim of reducing income inequalities. The return, however, will be mandatory for the supply of electricity and cooking gas to this portion of the population. The PEC also establishes a 60% tax cut for 13 sectors, such as education services, medicines, public passenger transport and agricultural products. Opposition Although members of the opposition, such as Ciro Nogueira (PI), one of the PP chiefs, voted in favor of the special calendar request, 24 senators were against the measure. Nogueira argued that the reform “is from Congress” and not from the government. According to him, the party has to maintain “coherence” as the party supported the text in the Chamber. The rapporteur for the matter in the House was a PP deputy, Aguinaldo Ribeiro (PB). The party leader, Tereza Cristina (MS), released the bench, however, she voted against the request. The government leader in the Senate, Jaques Wagner (PT-BA), acknowledged this Monday (6) that there may be negotiations to make the approval of the tax reform viable. The bargaining chip would be the overturning of President Lula’s (PT) vetoes on the time frame for the demarcation of indigenous lands – which would benefit the ruralist caucus and oppositionists. Ciro Nogueira; the PL leader, Carlos Portinho (RJ); and senator Zequinha Marinho (Podemos-PA), stated this Tuesday that they were unaware of the agreement. List of senators who were against the request: Marcos Pontes (PL-SP) Carlos Portinho (PL-RJ) Carlos Viana (Podemos-MG) Cleitinho (Republicanos-MG) Damares Alves (Republicanos-DF) Eduardo Girão (Novo-CE) Esperidião Amin (PP-SC) Flávio Arns (PSB-PR) Flávio Bolsonaro (PL-RJ) Hamilton Mourão (Republicanos-RS) Izalci Lucas (PSDB-DF) Luiz Carlos Heinze (PP-RS) Márcio Bittar (União-AC) Marcos do Val (Podemos-ES) Mecias de Jesus (Republicanos-RR) Oriovisto Guimarães (Podemos-PR) Plínio Valério (PSDB-AM) Rodrigo Cunha (Podemos-AL) Rogério Marinho (PL-RN) Soraya Thronicke (Podemos-MS ) Tereza Cristina (PP-MS) Wellington Fagundes (PL-MT) Wilder Morais (PL-GO) Zequinha Marinho (Podemos-PA)

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