The House, which had already analyzed the proposal in July, approved the project for the second time this Tuesday (17), after modifications made by the Senate
Almost eight months after it was sent by the economic team, the vote on the first regulatory project for the . The text now follows the sanction of President Luiz Inácio Lula da Silva. The Chamber of Deputies, which had already analyzed the proposal in July, approved the project for the second time this Tuesday, after modifications made by the Senate.
When opening the vote, the president of the Chamber, (PP-AL), stated that the text presented to the deputies for consideration was not ideal, but what was possible given the political negotiations, repeating a speech from the first phase of the tax reform. “Distortions that remain may be the subject of complementary bills in the future and will be very welcome in this National Congress,” said Lira.
The first regulation of the tax reform brings the main operating rules of the new Value Added Tax, which will be dual: the Contribution on Goods and Services (CBS), the federal VAT, and the Tax on Goods and Services (IBS), the VAT of States and municipalities. They will replace five taxes that currently affect consumption and are embedded in product prices: IPI, PIS/Cofins, ICMS and ISS.
New VAT rate
The Ministry of Finance calculated that the reference rate for new taxes would be around 27.97% after the first vote in the Chamber, in July. After passing through the Senate, the figure increased to around 28.7%. Upon return for further consideration by the deputies, the rapporteur in the Chamber, Reginaldo Lopes (PT-MG), removed several exceptions inserted in the Senate, such as benefits for sanitation, biscuits, mineral water, veterinarians and football teams.
He claims that, as a result, he caused a drop of 0.71 points in taxation. Therefore, the rate must return to the level of 28% – a calculation that will still be redone by the Ministry of Finance. The special secretary for tax reform at the Ministry of Finance, Bernard Appy, minimized the expectation of an increase in the rate.
“The most important part of tax reform regulation is the sanction, I am very happy. The Chamber managed to make adjustments that reduced the reference rate in relation to what came from the Senate, which is positive. The most important thing is to have won this stage”, he said, shortly after the vote concluded, in the Chamber plenary.
He did not want to anticipate the veto requests that will be recommended by the Treasury. Reginaldo Lopes said that the details embedded in the regulations end up taking the focus away from the relevance of the tax reform, such as the change in taxation from origin to destination, cashback (tax refund) for the poorest, in addition to transparency in taxation.
“Sometimes we debate whether sugar has been introduced, sugary drinks have been introduced, this or that has been reduced. But the concept of reform is something extraordinary. We connect Brazil to the world, to 98% of nations that charge taxes on value-added consumption,” said Lopes. The Chamber set a ceiling for the VAT rate at 26.5%. If the percentage is above this limit, the government must propose the withdrawal of tax benefits granted to sectors covered by special regimes.
The tax reform transition begins in 2026, with companies providing information on how much they should pay in taxes. The obligation will only be accessory. In 2027, new taxation begins with a test rate of 0.1% for IBS and 0.9% for CBS. Only in 2033 will the two new taxes be fully implemented.
Benefit for refinery in Amazonas
Despite pressure from the productive sector, the deputies approved the benefit granted to the Amazon refinery, inserted in the text on the initiative of Senator Eduardo Braga (MDB), who is from the State.
At the last minute, under pressure from the president of the Chamber, Arthur Lira (PP-AL), the opposition backed away from the only highlight (suggestion of changes to the main text), and the PL withdrew the proposal to remove the benefit. In this way, the oil refining activity will have access to the tax benefits of the Manaus Free Zone.
The text states that the advantage is only valid for units installed in the region. There is a single refinery in the North of the country, the Amazônia Refinery, which was purchased by Atem in 2022. The benefit provoked complaints from competitors located in other parts of the country – seven business entities supported the overturn of the measure.
Reginaldo Lopes admitted that, through a political agreement, the extra advantages included in the tax reform by Eduardo Braga were preserved. According to him, the rule provides that the advantage will only be granted for fuel sales within the Manaus Free Trade Zone region.
Companies in the Free Zone obtained, however, additional benefits, such as presumed IBS and CBS credits for both industrial and commercial activities, as well as a specific IPI to surcharge competitors from other regions, maintaining the region’s comparative advantage. The benefits were designed to replicate the incentive that exists today, but the assessment of tax experts is that the conditions have become even more advantageous.
‘Sin Tax’
The regulation establishes the rules of the Selective Tax, also called “sin tax”, which surcharges items considered harmful to health and the environment. Cigarettes, alcoholic beverages, sugary drinks, vehicles (including electric ones), jets, boats, online betting (bets) and mineral extraction will be taxed.
The Senate tried to save sugary drinks, but the innovation did not pass the Chamber. Rapporteur in the Senate, Braga also tried to include the taxation of weapons and ammunition by the Selective, but the change was not approved by the senators.
Sanitation
Another change made by the senators that was rejected by the Chamber was the inclusion of basic sanitation in the reduced rate, with a 60% discount. The senators tried to equate sanitation with health services, which benefit from the discount, but the initiative fell through in the Chamber, under the allegation that the poorest consumers would already benefit from the cashback, and that the simple inclusion of the sector would have a strong impact on increase in the standard VAT rate – estimated at 0.38 points, according to the Ministry of Finance.
Real Estate
The new IBS and CBS will basically fall on activities between companies, but individuals will be taxed on real estate transactions if the income obtained from the lease exceeds R$240,000 per year and the owner has more than three properties. In the case of sales, individuals who sell more than three properties in a year or more than one property acquired in the last five years will be taxed. The rental rate will have a 70% discount compared to the standard rate. The one that applies to the sale will have a 50% discount.
Basic basket and cashback
The regulation also listed the items that will make up the national basic food basket, which will have a zero rate. In addition to basic food items, meats and cheeses were included, and tapioca and yerba mate were included. The rapporteur removed soybean oil from the zero-tax basket, but in agreement with the production sector – which received in return the prediction that the crushing industry will have access to a benefit on exports.
The product was added to the list of foods with a reduced tax rate, with a 60% discount, along with all other types of oil. Cashback was also introduced, the return of taxes included in electricity, water and sewage, gas and telecom bills for the low-income population.
The refund will be full in federal taxation and at least 20% in taxation of states and municipalities, which may approve local laws with greater tax refunds. For other products and services, the refund will be 20% of CBS and IBS. The tax rate for bars and restaurants, hotels, amusement parks and theme parks was reduced to 40% of the standard.
Liberal, health and education professionals
Self-employed professionals in 18 categories, such as lawyers, personal trainers, architects and veterinarians will be taxed at a rate 30% lower than the standard rate. Gyms also got the reduction. Healthcare professionals, such as doctors and dentists, and education professionals have a greater discount of 60% compared to the standard rate.
Medicines and health plans
The text approved by the Chamber resumes the list of medicines with zero tax. The Senate had removed the list and determined that the list of exempt medicines should be established by a new complementary law.
Rapporteur Reginaldo Lopes rejected this provision and reestablished the annex approved by deputies with 383 zero-tax medicines. New insertions that have a low impact on the standard rate (up to 0.02 points) may be made by act of the Executive Branch. For products that have a greater impact, a new bill will need to be processed in Congress.
The regulation also authorizes companies to be credited for expenses with collective health plans provided for in the agreement offered to employees. Health plans for domestic animals, pets, have a rate reduced by 30%.
Nanoentrepreneur and app drivers
The regulation also establishes the figure of the nanoentrepreneur, whose income cannot exceed R$40.5 thousand per year. They will be exempt from IBS and CBS. During the Senate process, an amendment was accepted that changes the gross revenue for app drivers, starting to consider 25% of the gross monthly amount received as drivers’ gross revenue.
