Tax reform: Tarcísio supports centralized tax – 7/5/2023 – Market

After criticism from other states, the governor of São Paulo, Tarcísio de Freitas (Republicans), now admits the possibility of supporting centralized tax collection in the tax reform. After a meeting with Finance Minister Fernando Haddad, he said this Wednesday (5th) that the clearing house is not a “workhorse”.

“The clearing house is an alternative, it is not a battle horse, which needs to be like that. As we improve the governance of the Federative Council, we can move towards a centralized administration. If governance is worse, then it makes sense for us to work with a clearing house”, he said.

Tarcísio had been defending a clearinghouse between the state governments to transfer the resources collected in the new IBS (Tax on Goods and Services) on the grounds that the Federative Council would be an affront to the autonomy of the states to collect their taxes.

In the text of the reform’s rapporteur, Aguinaldo Ribeiro (PP-PB), one of the tasks of the collegiate would be to centralize the collection of the IBS and distribute resources to states and municipalities. São Paulo resists this model and wants to maintain control over the collection of taxes and then pass on the part that belongs to other entities.

On Tuesday (4), the governor of Rio de Janeiro, Cláudio Castro (PL), said that the state would not fight for a decentralized collection model in the reform.