Working group proposes tax reform with dual VAT, selective tax and ‘cashback’

[ad_1]

Group analyzes guidelines of the proposal presented by the rapporteur, deputy Aguinaldo Ribeiro. The working group of the Chamber of Deputies that discusses the tax reform proposed this Tuesday (6) the adoption of a dual VAT, a selective tax, ‘cashback’, in addition to differentiated rates for areas such as health and education (understand more below ). The group met to approve guidelines for the proposal by the rapporteur, Deputy Aguinaldo Ribeiro (PP-PB). The text is not yet the final opinion of the Proposed Amendment to the Constitution (PEC) of the reform, which will be analyzed by the deputies in plenary, but the work aims to speed up the presentation of a substitute (that is, a new version of the project) when the text is taken to plenary. In February, the president of the Chamber, Arthur Lira (PP-AL), created the working group, composed of 12 deputies, to debate the PEC of the tax reform that is being processed in the House. There is also another proposal on the subject under discussion in the Federal Senate. The main objective of the reform is to simplify and facilitate the collection of taxes. This measure is considered essential to unlock the economy and boost the country’s growth and job creation. Understand what the rapporteur proposes below: Dual VAT The working group defends the implementation of the dual model, in which three federal taxes (IPI, PIS, Cofins), one state (ICMS) and one municipal (ISS) would be replaced by two Value Added Tax (VAT). In this case, it would be a federal VAT, and another with shared management between states and municipalities. With the implementation of VAT, taxes would become non-cumulative. This means that, along the production chain, taxes would be paid only once by all participants in the process. With VAT, companies could deduct, when paying the tax, the amount previously paid in the production chain. They would only collect the tax on the value added to the final product. Selective tax In addition to the dual VAT, the group also proposes the institution of a selective tax for products that are harmful to the health of the population and the environment. Cashback The text presented by the WG provides for a kind of “cashback”, that is, a refund of part of the tax paid, to low-income families. The idea is to reduce the so-called regressiveness of the Brazilian system, that is, the high burden of taxes for the low-income population. The public to be benefited has yet to be defined. Tax Reform Secretary Extraordinary Bernard Appy has been advocating cashback for low-income families. Differentiated rates The proposal also provides for different rates for certain cases, for example, for goods and services related to health, education, urban, semi-urban or metropolitan public transport, regional aviation and rural production. It also proposes to evaluate the possibility of maintaining the differentiated treatment of products in the basic food basket.

[ad_2]

Source link