Tax Reform and Advocacy – PEC 45/2019 (Part I)

In this Proposal, the granting of tax benefits is not allowed and in order to effect the sharing of the collection, each federative entity has its determined portion.

PEC No. 45/2019, presented by Deputy Baleia Rossi (MDB-SP), proposes the replacement of five taxes (IPI, PIS, Cofins, ICMS and ISS) by one on goods and services (IBS) and another selective on products and services. specific services.

The IBS would be a federal tax, instituted by means of a complementary federal law, with sub-rates fixed by the ordinary laws of the federal entities, so that the sum of the portions of the sub-rates fixed in percentage points (“singular rates”) would represent the value of the rate applicable to each constitutional destination, that is, the reference rate for all sectors, allowing differentiated application.

In this Proposal, the granting of tax benefits is not allowed, and in order to effect the sharing of the collection, each federative entity has its share determined from the application of its sub-rate.

The selective tax, in turn, of an extra-fiscal nature, according to the Proposal, would be levied on goods, services or taxed rights in order to discourage consumption, as defined by ordinary law or provisional measure.

In the course of PEC No. 45/2019, the latest developments concern the submission of requests in order to invite the Minister of Economy to present the Federal Government’s Tax Reform proposal to the Special Commission and to hold a public hearing dealing with the project of authorship of the Executive Branch.

By: Wilson Sales Belchior