By 330 votes to 104, the Chamber of Deputies approved this Monday (15) the complementary bill which creates the rules of the management committee and concludes the consumption tax reform. The analysis of the highlights should, however, be scheduled for this Tuesday (16).
The approved report by MP Mauro Benevides (PDT-CE) removed the maximum cap of 2% for the selective tax rate levied on sugary drinks operations. This point is still the subject of disagreement and there are significant points to return to the limit set by the Federal Senate.
After a leaders’ meeting this Monday (15), an agreement was reached that the highlights would not be presented, but throughout the vote, MPs presented attempts to change the text — and it was not possible to reach an agreement for withdrawal on Monday evening.
The consumption tax reform creates the Contribution and the Tax on Goods and Services (CBS and IBS, respectively), in addition to the Selective Tax, which will apply to new goods and services for health or the environment. The IBS will be the consumption tax under the jurisdiction of the states and municipalities, while the CBS and the Selective will fall under federal jurisdiction. A first draft regulating the new taxes was approved by Congress last year and has already been sanctioned.
The project completes the regulatory phase by creating the IBS management committee, responsible for administrative matters and monitoring the new taxes. As shown in ValueStates and municipalities were pushing for approval of the text, at the risk of harming the implementation of the test phase of the consumption tax reform, which begins on January 1.
The IBS Management Committee, an entity which brings together states and municipalities to administer the new tax, is currently operating on a provisional basis. However, this solution is only valid until December 31. Thus, if the proposal was not approved, the reform could enter the testing phase without the participation of subnational entities.
The Ministry of Finance also needs the approved text to be able to finalize the regulation of the new taxes, in partnership with the Steering Committee. Without the approved and sanctioned project, the new tax regulations cannot be published.
The deputy rejected certain articles approved by the senators, such as the forecast of the consolidated fiscal document by municipality. He also resumed his writing within the National Chamber for the Integration of Administrative Litigation IBS and CBS. In the previous version of the opinion, filed on Friday (12), the rapporteur deleted this section.
This body is intended to standardize the agreements between the Management Committee and the Tax Appeals Administration Council (Carf) concerning the new tax rules.
The limitation imposed by the Senate which limited the zero rate to drugs intended for rare diseases, diabetes, among others, has also been removed. Attempts to modify the rapporteur’s text must still be voted on in plenary.
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