President of the Chamber wants to analyze text with the fullest plenary; Reginaldo Lopes proposes putting sugary drinks back under the “sin tax”
The President of the Chamber of Deputies, (PP-AL), postponed until Tuesday (Dec 17, 2024) the vote on the main text of the tax reform regulation, which deals with the unification of taxes for the creation of the IBS (Goods and Services Tax) and the CBS ( Contribution on Goods and Services), which will make up the dual VAT (Value Added Tax).
The vote was scheduled by the deputy from Alagoas on Monday (Dec 16), but he chose to postpone the consideration due to the empty plenary. The Lower House worked remotely and, therefore, deputies were not in person in the plenary. Congressmen can register their presence and vote remotely, using an app. On Tuesday (Dec 17), attendance is mandatory.
TAX REFORM
Before the vote was postponed, the rapporteur for the reform in the Chamber, deputy (PT-MG), presented the proposed changes in relation to the .
Among them are:
- sugary drinks: return to the list of IS (Selective Tax) products – or “sin tax”;
- sbasic cleaning: removal of the 60% reduction in IBS and CBS; was included, however, in the cashbacka mechanism that will allow partial refund of service payments to low-income families;
- mineral water: removal of the 60% reduction in IBS and CBS rates;
- cookies: removal of the 60% reduction in IBS and CBS rates;
- medicines: returns to the list of medicines approved by the original text of the Chamber that will be exempt from IBS and CBS; it will no longer be up to Congress to approve a complementary law with the list of medicines that will be exempt;
- veterinary medical services: reduction of 30% in the rate, not 60%.
REMEMBER
Congress approved the PEC (Proposed Amendment to the Constitution) in 2023 which created the reform. What was on the agenda this Monday (Dec 16) is the regulation of retirement, that is, the specific rules.
The main objective of tax reform is to simplify taxes in Brazil. It establishes the unification of federal, state and municipal taxes.
Currently, Brazil has 5 taxes that apply to products purchased by the population:
- IPI (Tax on Industrialized Products);
- PIS (Social Integration Program);
- Cofins (Contribution for Social Security Financing);
- ICMS (Tax on Circulation of Goods and Services); and
- ISS (Service Tax).
The tax reform aims to simplify them into dual VAT for goods and services, with federal taxation, which would unify IPI, PIS and Cofins, and another state/municipal taxation, which would unify ICMS and ISS.
In addition to PLP 68 of 2024, the Senate is processing the which establishes the rules of the IBS (Goods and Services Tax) Management Committee, which will be responsible for collecting the tax and distributing the proceeds to States and municipalities. The project and awaits a vote from the senators.
