Tax Reform: Ministry of Finance admits accepting new VAT rates

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The government’s economic area already admits accepting one or two more ranges of differentiated rates within the tax reform, a novelty given the discussions that have been taking place in Congress. In meetings with parliamentarians, high-ranking technicians from the Ministry of Finance admitted an escalation beyond the reduced rate of 60% and the selective tax (which will apply to goods that are harmful to health and the environment). This Thursday, the technicians admitted to studying tax rates of 20% and up to 30%, as the blog found. The ranges would be valid for VAT (Value Added Tax), which would continue to have an overall weight of between 25 and 27.5%. The rate ranges would be a way of maintaining the competitiveness of some sectors, such as agribusiness, electronics or industrial companies, which claim to suffer from external competition. The project approved by the Chamber provided for a 60% reduced rate for education, for example. Read also: Glossary of tax reform: understand the main terms of the proposal that changes the way taxes are charged Tax reform: rapporteur suggests evaluating tax incentives every five years Tax reform rapporteur defends increase in fund resources for states Voting may take place in the coming days The project’s rapporteur in the Senate, Eduardo Braga (MDB/AM), is expected to present his report in the coming days. On Wednesday (18), Braga said that the so-called “sin tax” will no longer be used to maintain the competitiveness of the Manaus Free Zone. Senator Eduardo Braga in a meeting with Finance Minister, Fernando Haddad. Jonas Carvalho/Disclosure Already this Thursday (19), the Minister of Finance, Fernando Haddad, asked Congress for speed in voting on the text in a lecture during a congress promoted by the Brazilian Institute of Education, Development and Research (IDP) and the Foundation Getúlio Vargas (FGV). “Tax reform is perhaps the most important thing we have ahead of us from a constitutional point of view. I am very confident that the National Congress will complete this work. The Chamber did a good job in the first half of the year. There is a climate in the Senate also to address this vote later this year”, said the minister.

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