The House approves the second stage of tax reform regulations

The Chamber of Deputies approved, in the early hours of this Tuesday (16/12), the basic text of the Complementary Draft Law (PLP) 108/24, the second which regulates tax reform. The score was 330 to 104.

The President of the House, Hugo Motta (Republicanos-PB), left the strong points – suggestions to be analyzed separately – for a session scheduled for this Tuesday, due to the extension of voting time, which began this Monday (15/12).

After the vote, the text will be approved by President Luiz Inácio Lula da Silva (PT). Tax reform has been one of the government’s priorities since 2023. To come into force in 2026, Congress will have to approve three texts: a Proposed Amendment to the Constitution (PEC), already approved in 2023, and two PLPs, including one already approved in 2024.

How will the steering committee work?

The proposal establishes governance rules, focusing on the structure and functioning of the IBS (goods and services tax) management committee.

The management committee will be structured into seven organizational bodies. They are:

Higher Council;
Presidency and Vice-Presidency;
Board of Directors, accompanied by its directors;
General Secretariat;
Institutional and Interfederal Relations Consulting; the Department of Internal Affairs; And
Internal audit.

The central body of the collegiate will be the Superior Council, composed of 54 members, 27 representing the States and 27 representing the municipalities.

In the case of states, the names indicated by the governors will be the Secretaries of Finance, Finance or Economy of each unit of the Federation. Municipal representation will be defined through elections, with lists organized by the National Front of Mayors (FNP) and the National Confederation of Municipalities (CNM).

Report to the House

The text was approved by the Senate on September 30, under the leadership of Eduardo Braga (MDB-AM). In the Chamber, rapporteur Mauro Benevides (PDT-CE) modified the opinion presented by Braga.

Among the changes, Benevides removed the provision for a 2% cap on the selective tax on sugary drinks, such as soft drinks. The impact of the “sin tax” on these products was not included in the version approved by the House in 2024.

Experts said this limitation would undermine the main function of the tax, which is to discourage the consumption of drinks that are harmful to health.

The deputy maintained the creation of the National Chamber for the Integration of Litigation, included in the Senate. The panel will be responsible for analyzing cases related to the tax jurisprudence established by the tax reform, covering both the CARF (Administrative Council for Tax Appeal) and the IBS Steering Committee.

Taxpayers and the National Treasury will have the possibility of appealing to the National Chamber. Additionally, it will be permitted to propose a standardization incident in cases involving repetitive material.

Below, the composition of the National Chamber for the Integration of Administrative Litigation IBS and CBS (Contribution on Goods and Services):

1 president, who votes only in the event of a tie;
4 advisors representing the National Treasury, from the Superior Chamber of Carf;
4 members of the Upper House of the IBS Management Committee (2 from the States and 2 from the municipalities);
4 representatives of taxpayers (2 advisors from the Superior Chamber of the CARF and 2 from the Superior Chamber of the Management Committee), designated by the Minister of Finance and by the Committee itself.

Read other highlights from the text:

Nanoentrepreneurs: The text also covers taxi drivers and other persons who provide individual transportation and delivery services. The idea is that these workers are exempt from the IBS contribution and the contribution on goods and services (CBS), provided that 25% of their gross monthly income is within the limit of 50% of the income ceiling set for the individual microentrepreneur (MEI);
Cars for PCD: tax exemption on the purchase of vehicles worth up to R$100,000 for people with disabilities;
Split payment: Split payment is a payment mechanism in which the value of a transaction is automatically split between the seller and the tax authorities instantly at the time of payment, ensuring that taxes are immediately remitted to the government.