Tax reform: Dual VAT seems to be more accepted, says deputy

The idea of ​​a reform that unifies some taxes with the Value Added Tax, a proposal called Dual IVA, has been better accepted in the tax reform discussions, according to the coordinator of the working group that elaborates the proposal in the Chamber of Deputies, Reginald Lopez. The parliamentarian participated in the event promoted by the National Confederation of Municipalities (CNM) in Brasília, this Tuesday (30), in Brasília. There are those who defend the Single VAT, which would replace five federal, state and municipal taxes, while the Dual VAT results in a federal tax and one of state and municipal competence. “Many governors defend the Dual IVA and many mayors defend the Dual IVA. Those who defend the Single IVA do not reject the Dual IVA, so it is likely that they will pass the Dual IVA anyway”, concludes Lopes. At the event, the deputy confirmed that the reform will change the place where the tax is collected to where the consumer lives. The measure was defended by the mayors at the event. Reginaldo Lopes also said that there will be no loss of revenue with the reform, a concern raised by governors last week. “There is a clearing house in the next forty years, so the tax collection level will be corrected by a revenue equalization chamber. So nobody loses, everybody wins. Now, there are states that earn more and there are states that earn less”. deputy reaffirmed that the working group’s report will be delivered on June 6th and should be voted on before recess.

Agência Brasil