“Tax Reform was well accepted, but issues will be revisited”, says Eduardo Braga

Brasilia DF) – Senator Eduardo Braga (MDB) participated in a press conference, this Tuesday morning (11), after confirmation of his report on the tax reform (PEC 45/19) in the Federal Senate, by the President of the House, Rodrigo Pacheco (PSDB-MG ), to provide details of the next steps after approval by the Chamber of Deputies. Braga declared that the final wording is still pending in the Chamber and the process will only be processed in the Senate during the second half of the year.

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With regard to the Manaus Free Trade Zone (ZFM), the senator added that there are still issues to be resolved and adjustments made, despite praising the progress that the final text had in relation to the initially proposed text. “This text was constructed by several hands. So there was a lot of effort.”

“I think he has evolved a lot compared to what was initially placed. Of course, there are still adjustments to be made, not only in relation to the Free Zone, but in relation to other sectors, many issues in the Northeast, specific issues that need to be discussed and there are also federal issues that we understand that here in the Senate we will have to be discussed, but without a doubt there was an advance in the text that was initially being proposed for the text. But like everything else in the legislative process, we know that we still have issues to resolve not only about Amazonas, but as I said about Northeast issues, there were matters that were very close to being resolved in the Chamber, you know that. I just said that the final wording has not even been published by the chamber. But we know that issues like these will need to be revisited in the Senate, and they certainly will be.”

he declared.

Braga highlighted the importance of having a project for the Amazon that does not intend to fragment the PEC, and if there are changes, the text returns to the Chamber to be analyzed again. “A country that has a commitment to the Amazon cannot fail to have a project for the Amazon.”

“Tax reform will have to be treated as a whole so that it doesn’t become, let’s say, ‘sometimes atrophied on one side, lame on the other’, it therefore needs to be seen globally. Our intention is that we can work to deliver a text, which, if there are changes, goes back to the chamber, to be analyzed and then, from this second analysis, we will then have an evaluation of a tax system that is well evaluated, understood and predicted even by the models, because what we are now starting to ask is for the Ministry of Finance and the Ministry of Planning to be able to run these models proposed by the PEC so that we have a forecast for revenue, forecast for taxation, so that we we can have scenarios of what we are effectively dealing with”

he stated.

Regarding his work plan, Eduardo Braga said he already has a project, but it is not yet completely defined. “We have an idea, but we haven’t closed it yet because it will be the result of extensive negotiations with the President of the Constitution and Justice Commission, with the members of the Constitution and Justice Commission and with the President of the Senate, Rodrigo Pacheco, with whom I will talk a lot because many of the issues will also be handled by President Rodrigo Pacheco.”

Amazon security

The senator of Amazonas Plinio Valério (PL) declared to the IN TIMEthat the decision to make Eduardo Braga the rapporteur for the Tax Reform brought greater security to the state of Amazonas, as he knew the state’s reality.

“This brings greater security for us, because Eduardo was governor of the state, in addition to being a senator of Amazonas. He knows our reality, our anxieties, our problems and our fragility with legal uncertainty. His choice is very good for the Manaus Free Trade Zone”

he claimed.

Plinio does not see a union in the Senate regarding the Reform reports in general in the House. “I see União Braga and I, but I don’t see that union to reject or prove, but certainly many amendments will be presented here in the Senate. And if one of them is used, it goes back to the Federal Chamber.”

Approval

After leaving the residence of Senator Rodrigo Pacheco (PSDB-MG), after the decision Haddad expressed confidence in the approval, later this year, of both the tax reform and the bill that restores the tie-breaking vote in the Administrative Council of Tax Appeals (Carf ).

“We are confident that we will approve the matters coming from the Chamber, with the independence that the Senate has, in the sense of perfecting the texts. Very confident that we will enact a tax reform, after so many decades, that is up to the challenges facing Brazil”, said Haddad.

The decision for Eduardo Braga’s rapporteur was confirmed this Tuesday (11) by the President of the House, Rodrigo Pacheco (PSDB-MG), after meeting with the Minister of Finance, Fernando Haddad, and with the Minister of Planning and Budget , Simone Tebet.

Tax reform

The final version of the report adjusted the articles related to the Manaus Free Trade Zone and the Export Processing Zones (ZPE) to clarify the different treatment and the advantage of the companies located in these areas. Which were the main points claimed by Amazonas, thus maintaining the competitiveness of the industries of the Industrial Pole of Manaus until 2073, which guarantees legal security to attract new investments and, as compensation for the change in the calculation of taxes from the destination to origin, a special fund for the state of Amazonas.

The text also provides for the creation, by complementary law, of the Compensation, Sustainability and Economic Diversification Fund of the State of Amazonas, which has the objective of promoting new productive activities aimed at the state’s vocations, such as the sustainable exploitation of potassium, the carbon market and business with forest products.

Until 2078, companies in the region of the Industrial Pole of Manaus (PIM) will be able to have the support of mechanisms to maintain the competitive differential assured to the region at the levels established by the legislation of the taxes extinguished by the reform.

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