Medicines are on the list of those that will have lower taxation or exemption | Photo: Leo Fontes
A Tax Reform approved in the Senate simplifies the main taxes and contributions on consumption and, in practice, brings several changes for consumers, companies and public entities. The text approved in the Senate this Wednesday (8) provides for a series of products or services with zero or reduced taxes. See the main changes in the daily lives of Brazilians.
FLEX, ELECTRIC CARS, BENEFITS FOR TAXI DRIVERS
– Extension of incentives for automakers in the Northeast, North and Center-West
– The benefit will apply to electric vehicles, hybrids that use ethanol and flex cars (powered by ethanol or gasoline)
– Exemption from new taxes on the purchase of cars by people with disabilities and people with autism spectrum disorder
– Exemption from new taxes on the purchase of cars by professional taxi drivers
MEDICINES
– Medicines are on the list of those that will have lower taxation or exemption. The government calculates that, as a result, the load of these items will remain the same as the current one or can be reduced
– The reduction of 100% of the total tax rate for medicines, medical and accessibility devices for people with disabilities and basic menstrual health care products is authorized by complementary law
– There will also be medicines with a reduced rate, equivalent to 40% of the standard
Composition of the basic food basket varies across UFs
See examples of additional items at each location:
AC – Notebook, pen, school pencil and eraser
AL – Colorau
AM – Meat sausages
AP – Tapioca
BA – Pasta, table salt and cornmeal
CE – Pumpkin, jackfruit, lard, tile, brick, notebook, pen, pencil, eraser, sharpener, mechanical pencil, satellite dish, bicycle and motorcycle helmet
DF – Live birds, tomato paste and rapadura
ES – Garlic, salt and cornmeal
GO – Sanitary pad, toothbrush, broom, Minas cheese and brown sugar
MA – Toothbrush and tampon
MG – Cheese bread, quail eggs, brown sugar and cheeses produced in the state
MS – Lard and honey from Mato Grosso do Sul
MT – Yerba mate and lard
PA – Chocolate powder and preparations for baby food
PB – Not identified
PE – Cassava starch (tapioca), beef jerky and cornmeal or similar for making couscous
PI – Pork lard, edible beans and cassava gum (tapioca)
PR – Yerba mate, powdered egg and rolled oats
RJ – Repellent, sunscreen, absorbent and some medicines
RN – Corn flakes and cornmeal
RO – Unidentified
RR – Not identified
RS – Mixes and pastes for preparing bakery products
SC – Yerba mate
SE – Coalho cheese, cottage cheese and jerky
SP – Contraceptive, analgesics, anti-inflammatory and other medications
TO – Salt
Source: FGV Direito SP
NATIONAL BASIC BASKET
-The reform provides for a zero rate of the new tax for items from the so-called National Basic Basket, a more restricted list of essential items consumed by Brazilian families
– The choice of products from the national basket is not yet known and must be made through complementary law
– Given regional discrepancies, today in the country there are basic food baskets with a wide range of products, such as repellent, sunscreen, cheese bread, yerba mate, broom, school supplies, medicines, bricks, motorcycle helmets and satellite dishes. The reform provides that the new list “will consider the regional and cultural diversity of food”
– There is also an extended basic basket, which will include other food and hygiene products not covered by the exemption from the national basket. The category will have a reduced rate, equivalent to 40% of the full value
CREDIT RETURN ON THE PURCHASE OF GAS AND ELECTRICITY BILLS
– Low-income families will have the right to a refund of part of the taxes paid on goods and services, a mechanism called “cashback”
– The text made cashback mandatory on the electricity bill and on the purchase of gas cylinders by the most vulnerable consumers, but in practice the policy may include other consumer items
– The return hypotheses, limits and beneficiaries will be defined when the reform is regulated
ESTATE TAX
– The rapporteur’s proposal says that the tax will be progressive, that is, the greater the value of the assets involved, the higher the rate, similar to what occurs today in Income Tax in relation to salaries
– The text authorizes the collection of ITCMD on inheritances and donations from residents abroad without the need for the complementary federal law previously provided for in the constitutional text and never voted on by Congress
WHAT THE REFORM RATES WILL BE LIKE
The standard rate should be between 26.9% and 27.5%, according to preliminary government calculations
ACTIVITIES THAT WILL HAVE A REDUCED RATE (40% OF THE STANDARD)
– Education services
– Health services
– Medical devices
– Accessibility devices for people with disabilities
– Medicines
– Basic menstrual health care products
– Urban, semi-urban and metropolitan public transport services by road and subway
– Agricultural, fishing, forestry and plant extractive products in natura
– Agricultural and aquaculture inputs
– Food intended for human consumption
– Personal hygiene and cleaning products mostly consumed by low-income families
– National artistic, cultural, event, journalistic and audiovisual productions, sporting activities and institutional communication
– Goods and services related to sovereignty and national security, information security and cybersecurity
ACTIVITIES WITH INTERMEDIATE RATE (70% OF THE STANDARD)
– Independent professionals from regulated categories (such as lawyers, architects, dentists, engineers, accountants and other members of regulated professions) who are outside of Simples Nacional (whose revenue limit is R$4.8 million annually)
– These categories are now covered by more beneficial tax collection and payment rules and complained about the risk of a strong increase in burden after the reform
OTHER REDUCTIONS AUTHORIZED IN COMPLEMENTARY LAW
1 – Exemption for public transport
2 – 100% reduction in the CBS rate levied on Prouni and on services provided by non-profit innovation, science and technology entities
3 – Annual revenue limit of R$3.6 million so that individual or legal rural producers can not pay IBS and CBS
4 – 100% reduction in the total tax rate
– medicines and medical devices (including those acquired by public authorities and social assistance entities)
– accessibility devices for people with disabilities
– basic menstrual health care products
– vegetables, fruits and eggs
– passenger cars purchased by people with disabilities, people with autism spectrum disorder or by taxi drivers
– urban rehabilitation activities in historic areas and critical areas for urban recovery and conversion. (IDIANA TOMAZELLI/Folhapress)
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