Tax reform rapporteur in the Senate rules out slicing

Despite pressure from part of the allied base, the tax reform rapporteur in the Senate, Eduardo Braga (MDB-AM), ruled out slicing the proposal in the House. The parliamentarian promised to complete the vote on the text by October to send it back to the Chamber of Deputies, which would vote on everything again and send the text back to the Senate before the end of the year. “I heard, somewhere, someone say: let’s enact what is consensus and slice the PEC [proposta de emenda à Constituição]. This is a common thing when it comes to a subject that is not systemic. But in a systemic matter, where the first article has to do with the second, which has to do with the third… It is very complex. Therefore, the perception we have is that it is almost impossible to slice a PEC on a systemic matter such as tax reform”, declared the senator. Braga confirmed information from the President of the Senate, Rodrigo Pacheco (PSD-MG), that the tax reform should not have parts voted separately. In the morning, Pacheco gave a press conference at the official residence of the President of the Senate, accompanied by the ministers of Finance, Fernando Haddad, and of Planning, Simone Tebet. In this afternoon’s interview, Braga informed that the PEC, approved in the second round last Friday (7), has not yet reached the Senate, but said that the announcement of his name as rapporteur was brought forward so that negotiations can begin in the Senate. . The final opinion, highlighted Braga, will be elaborated in agreement with Pacheco and with the chairman of the Justice Constitution Commission (CCJ) of the Senate, Davi Alcolumbre (União-AP). Global review Traditionally, the Senate approves the consensus points of a PEC, which are enacted, and sends the rest to the deputies. Without commenting on the merits of the text, the rapporteur only said that the simplification of taxes on consumption, the first phase of the tax reform, needs to be seen “in a global way”. “The most likely is to vote in early October, mid-October. Our hope and our wish is that by mid-October we can return the PEC, with the hope that the Chamber can deliberate and return it to us, and so that by the end of the year we will have a tax reform”, he said. One of the topics that should be reviewed, according to Braga, will be the Manaus Free Trade Zone. To get votes from the Amazon bench, the rapporteur for the reform in the Chamber, deputy Aguinaldo Ribeiro (PP-PB) included a fund for the diversification of the economy of Amazonas until 2073. The reinclusion of tax incentives for industries in the North, Northeast and of the Midwest, admitted the rapporteur, may also be revised. The highlight that predicted the benefits was overthrown by the Chamber of Deputies by just one vote, obtaining 307 of the 308 votes needed to be approved.

Agência Brasil