Week starts with Lira’s effort to unlock economic agendas in the Chamber

The president of the Chamber of Deputies, Arthur Lira (PP-AL), is articulating a concerted effort so that this week the projects on the casting vote for Carf and the new fiscal framework are voted on, in addition to moving forward in discussions on tax reform , to be voted on before the July recess.

In addition to having scheduled an extraordinary session of the House plenary for this Monday (3), Lira also advanced the meeting of leaders of the week, which usually takes place on Tuesdays, to this Sunday night (2).

According to “Estadão”, the ministers of Finance, Fernando Haddad, and of Institutional Relations, Alexandre Padilha, were invited to the meeting. Haddad had already met with Lira on Friday to discuss the progress of economic agendas of interest to the government in the Chamber.

The first effort should be to approve the bill (PL) that resumes the casting vote of the Administrative Council of Tax Appeals (Carf), the last instance of administrative appeals on Federal Revenue penalties. If approved, it will guarantee victory to the Federal Revenue in case of ties in disputes in the council – and no longer to the taxpayer, as provided for in a law passed in 2020.

The government claimed that the measure generated BRL 59 billion in losses for the public coffers with the reversal of Revenue decisions. The bill’s rapporteur, Beto Pereira (PSDB-MS) must present his opinion this Monday.

Carf’s casting vote project is blocking the Chamber’s agenda. Due to an urgent request from the government for the analysis of the proposal, no other project can be voted on before. On the other hand, there is the possibility that the government withdraws the urgency to release the analysis of other proposals.

Another agenda that will, as of Monday, lock the agenda of the Chamber is the creation of the Escola em Tempo Integral Program (PL 2617/23).

The fiscal framework, which will replace the spending ceiling, is also in the sights of Lira and the government. The Senate made changes to the project that need to be approved by the deputies, such as the inclusion of new expenses that will not be affected by the spending growth target. The rapporteur is deputy Claudio Cajado (PP-BA).

Lira will also try to move forward with the tax reform, with the start of the vote may take place this week. The expectation is that the text will be analyzed by July 16, before the parliamentary recess that begins on the 17th and runs until the 31st of July.

The rapporteur for the tax reform in the Chamber, Aguinaldo Ribeiro (PP-PB), presented his preliminary opinion on the project on July 22nd. The text foresees a Tax on Goods and Services (IBS) with a maximum of three rates: the standard, one reduced by 50% for some sectors (transport, health, education, agricultural products, food, personal hygiene, activities artistic and cultural activities) and a zero rate (medicines, Prouni, individual rural producer).

Despite the efforts of Lira and Haddad in political articulation, tax reform is a thorny issue, difficult to pass. Last week, state finance secretaries claimed changes in the project, asking, for example, for an increase in transfers from the Union to the new Regional Development Fund, from R$ 40 billion to R$ 75 billion per year.

Also this week, deputies should analyze the recreation of the Food Acquisition Program (PAA), which allows the purchase of food from family farming for food security programs and the public education network. The project is reported by Deputy Guilherme Boulos (Psol-SP).