Câmara concludes vote on the tax reform in the second round

The House of Representatives concluded the vote, in the second round, of the tax reform (PEC 45/19), which simplifies taxes on consumption, provides funds to fund ICMS credits by 2032 and for regional development, as well as unification of the legislation of the new taxes. The article will be sent to the Senate.

According to the text of Deputy Aguinaldo Ribeiro (PP-PB), a complementary law will create the Tax on Goods and Services (IBS)-to encompass ICMS and ISS-and the contribution on goods and services (CBS) to replace PIS, PIS-IMPORTATION, COFINS AND COFINS-IMPORTATION.

Basic basket novelty compared to other reform versions, IBS and CBS is exempt from a national basic basket of products to be defined by complementary law.

In addition, several sectors will have a reduction of rates by 60% or 100%, also as defined by law. Among these sectors are education, health, medicine and culture services, agricultural products and public passenger transportation.

automakers for insufficient votes, the plenary removed from the text the extension of tax benefits from the Industrialized Products Tax (IPI) for auto plants in the North, Northeast and Midwest until December 2032. PL that asked for the exclusion of this stretch, there were 307 votes in favor of the exemption and another 166 against, but to maintain the writing would require 308 votes.

Rejections All the other highlights presented by the parties in an attempt to change excerpts from PEC have been rejected. Check it out:

- PL highlight intended to prevent the selective tax from composing the calculation basis of ICMS and ISS, while in force, and IBS and CBS;

- PL highlight intended to remove a device that allows the calculation base of the property tax by decree of the Municipal Executive Power, according to criteria of law; E

- PL Highlight wanted to exclude IBS specific tax regime for health care plans

Source: Agency Chamber of News