Representatives of the entity met with the rapporteur of the matter
Federal deputy Luiz Carlos Hauly (PSDB-PR), rapporteur for the Tax Reform in Congress, met with representatives of ABES for a dinner on Monday (20), when he presented the main points of the Tax Reform.
In his presentation, the deputy highlighted data that reinforce the imminent need for reform because, according to Hauly, the Brazilian system is “a true tax madhouse”, anarchic and chaotic, in which “those who can do more, cry less”. The main objective of this reform is “to use taxation as an instrument for sustained economic development and social inclusion, with an improvement in income distribution”, he highlighted.
Other goals are: to reduce the cost of bureaucracy and tax evasion, to end the tax war between states, to reduce the number of legal disputes and to make the inspection machines at the three levels – federal, state and municipal – more efficient due to a system simpler tax system, which should be reflected in improved collection. Brazil has accumulated losses from tax waivers, tax evasion, lawsuits and active debt, which affect the Union, states and municipalities.
Proposal
Among the tax reform proposals presented by Deputy Hauly is the creation of a value-added tax (VAT) and a selective tax (ISE), levied at destination; to fully exempt the entire food and drug chain from taxes, in order to provide social justice and reduce poverty; establish a progressive income tax; extinction of ISS, ICMS, IPI, PIS, Cofins, CIDE and Salario Educação taxes; maintenance of municipal and state taxes IPTU, ITR, IPVA, ITCMD and ITBI, but with uniform rates; among other points.
The deputy foresees a long transition period and says that one of the golden rules of the proposal is that the Union, states and municipalities will be “partners” of the three big taxes: VAT, IR and ISE. Two other “golden rules” of the reform proposal are: maintenance of the global tax burden, estimated at 35%; and maintenance of the participation in the tax collection, net of constitutional transfers, of each level of government.
“ABES believes that a well-conducted Tax Reform should simplify bureaucracy, improve inspections and, above all, increase taxpayers' legal certainty,” said Francisco Camargo, president of the association. The director informed that the meeting with Hauly makes it possible to understand the proposal to discuss the matter with the associated companies and present the contributions of the entity, which maintains a Committee on Tax Affairs. “We hope that the discussions on this Reform advance in the National Congress, as this issue is very relevant for the reduction of the Brazil Cost and the improvement of Brazilian competitiveness in the international scenario”, he concludes.
click here to access the presentation by Deputy Luiz Carlos Hauly.
In his presentation, the deputy highlighted data that reinforce the imminent need for reform because, according to Hauly, the Brazilian system is “a true tax madhouse”, anarchic and chaotic, in which “those who can do more, cry less”. The main objective of this reform is “to use taxation as an instrument for sustained economic development and social inclusion, with an improvement in income distribution”, he highlighted.
Other goals are: to reduce the cost of bureaucracy and tax evasion, to end the tax war between states, to reduce the number of legal disputes and to make the inspection machines at the three levels – federal, state and municipal – more efficient due to a system simpler tax system, which should be reflected in improved collection. Brazil has accumulated losses from tax waivers, tax evasion, lawsuits and active debt, which affect the Union, states and municipalities.
Proposal
Among the tax reform proposals presented by Deputy Hauly is the creation of a value-added tax (VAT) and a selective tax (ISE), levied at destination; to fully exempt the entire food and drug chain from taxes, in order to provide social justice and reduce poverty; establish a progressive income tax; extinction of ISS, ICMS, IPI, PIS, Cofins, CIDE and Salario Educação taxes; maintenance of municipal and state taxes IPTU, ITR, IPVA, ITCMD and ITBI, but with uniform rates; among other points.
The deputy foresees a long transition period and says that one of the golden rules of the proposal is that the Union, states and municipalities will be “partners” of the three big taxes: VAT, IR and ISE. Two other “golden rules” of the reform proposal are: maintenance of the global tax burden, estimated at 35%; and maintenance of the participation in the tax collection, net of constitutional transfers, of each level of government.
“ABES believes that a well-conducted Tax Reform should simplify bureaucracy, improve inspections and, above all, increase taxpayers' legal certainty,” said Francisco Camargo, president of the association. The director informed that the meeting with Hauly makes it possible to understand the proposal to discuss the matter with the associated companies and present the contributions of the entity, which maintains a Committee on Tax Affairs. “We hope that the discussions on this Reform advance in the National Congress, as this issue is very relevant for the reduction of the Brazil Cost and the improvement of Brazilian competitiveness in the international scenario”, he concludes.
click here to access the presentation by Deputy Luiz Carlos Hauly.
EN 
PT 
