Tax reform working group presented the schedule for analysis of the topic this Wednesday (1st).| Photo: Vinicius Loures/Chamber of Deputies.

The group that analyzes the tax reform in the Chamber of Deputies released this Wednesday (1st) the work schedule. The rapporteur, Deputy Aguinaldo Ribeiro (PP-PB), estimates that the delivery of the final opinion will take place by May 16th. The objective is to take the report straight to the plenary for voting. The schedule foresees the group’s performance for 11 weeks, the holding of an official mission to OECD countries and a final seminar.

Next week, two public hearings will be held to discuss the proposed amendments to the Constitution (PECs) 45/19, from the Chamber, and 110/19, from the Senate. The group’s coordinator, Deputy Reginaldo Lopes (PT-MG), reaffirmed that the government will not submit a new proposal on the subject, informed Agência Câmara. The extraordinary secretary for tax reform, Bernard Appy, who helped draft PEC 45, should participate in the hearings.

“I think that the day we conclude the work of the WG, we hold a week of seminars, with a group of deputies, from all benches and states, the following week this report has to go to the plenary. It is my political position. It is important to gain strength and not lose mobilization for approval”, said Lopes.

The reform should unify consumption taxes, including state ICMS and municipal ISS, into a single Value Added Tax. The change has impacts on existing tax benefits and on the distribution of collections. As the new tax would be charged on consumption, producing states and municipalities could lose revenue at first. Therefore, compensation funds and transition periods are studied.