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Government considers slicing tax reform

The Lula government is considering slicing the tax reform that it intends to approve in the National Congress. Although there is still no defined strategy, the initial assessment is that the preference is to take advantage of the proposed constitutional amendment 45, which is in the Chamber of Deputies and was presented by federal deputy Baleia Rossi, president of the MDB and member of the allied base of the government.

In this sense, there is a government preference for PEC 45 over PEC 110, which is in the Senate. Technically, both tax consumption, but there is a basic difference. PEC 45 proposes a Value Added Tax (VAT) while PEC 110 proposes a dual VAT – one federal and one subnational.

The government considers that the latest version of the two proposals are very close and that the initial idea is that the work done on PEC 110 be used in the discussion of PEC 45.

With regard to the tax reform of the Income Tax, the initial idea is to submit a new proposal. In this sense, the government does not intend to take advantage of a project that has already been approved in the Chamber and is in the Senate, PL 2337, as it considers that it has many shortcomings.

Source: CNN Brasil

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