VAT (new tax) could rise by 0.5% with changes in the Senate

Minister Fernando Haddad said, this Thursday (2), that the changes to the text of the Tax Reform in the Senate should increase the standard rate of the future VAT (Value Added Tax) by 0.5%, in relation to the version voted in the Chamber.

In this way, the charge range that fluctuated between 25% and 27% can reach 27.5%. Haddad, however, ruled out reaching 28%. The increase is due to exceptions offered to specific sectors, according to him.

“It doesn’t reach 28%. If you take the study that [secretário extraordinário da Reforma Tributária, Bernard] Appy did, as he didn’t reduce the exception, he expanded it a little, he expanded [a alíquota em] about 0.5 points. We gave the estimate to the Senate’s technical team, this has to be made public,” he said, according to Folha de São Paulo.

After meeting with the tax reform rapporteur, senator Eduardo Braga (MDB-AM), Haddad highlighted that the economic team was always against creating exceptions to the tax system, but, to guarantee conditions for approving the text, it was necessary to give in, according to Valor Economic.

Haddad also highlighted that the opinion under discussion is not perfect, but it represents a leap in quality compared to the current tax model.

The PEC (proposed amendment to the Constitution) can be considered next Tuesday (7) at the CCJ (Constitution and Justice Commission), deliberated in the Senate plenary in the first round on Wednesday (8) and, on Thursday (9), in second round.

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