Governor Mauro Mendes (União) stated that there are still major mistakes in the basic text of the Tax Reform currently being processed in the Senate. On Tuesday (8), the PEC (Proposed Amendment to the Constitution) was approved by the CCJ (Constitution and Justice Committee) of the House and will now go to the plenary.
Mendes pointed out that there had been progress in relation to the text approved by the Federal Chamber. However, the change that is essential to him was not made: the incidence of taxes on commodities.
“Despite some advances in the final text, this reform, in my opinion, brings a big mistake: the complete exemption of the entire export chain of primary products. Whether in agribusiness, mining or any other sector. This will cost the country dearly”, said Mendes this Wednesday morning (8), in the province of Haina, China, where he participates in meetings to attract investors.
Despite some advances in the final text, this reform, in my opinion, brings a big mistake: the complete exemption of the entire export chain […] This will cost the country dearly
“If these large chains are going to stop paying this new tax completely, who is going to pay more to cover the costs of the Brazilian State? Who will pay for Education, Public Security, Infrastructure and all areas?”, he added.
For him, without taxes on exports, there will be “serious consequences” for Brazilian finances.
“In the future we will see that we made a mistake. I hope I’m wrong, and that this doesn’t happen. Because we will have serious consequences if it is true,” she said.
Understand Mendes’ discontent
The Tax Reform proposal on consumption eliminates taxes such as IPI, PIS, Cofins, which are federal, as well as ICMS (state) and ISS (municipal) and creates new taxes.
They are: CBS (Contribution on Goods and Services) at the federal level; IBS (the Tax on Goods and Services) under state and municipal jurisdiction, and the Selective Tax (on products harmful to health or the environment).
CBS and IBS focused on services, goods (material or immaterial) and rights, including imports.
It turns out that it does not affect exports. The text also provides for the refund of the tax paid by the exporter on inputs.
Read more on the subject:
Tax Reform is approved in committee and goes to the plenary