2023-12-15 21:50:45
© Reuters. President of the Chamber of Deputies, Arthur Lira 10/06/2022 REUTERS/Adriano Machado
BRASILIA (Reuters) – The plenary of the Chamber of Deputies began discussing tax reform in the first round on Friday afternoon, after an agreement sealed the day before in a 4-hour meeting and just a few days before the end of Congress’s work before of the parliamentary recess.
The president of the Chamber, Arthur Lira (PP-AL), had stated shortly before that the text of the reform will not have sections rewritten and will only undergo the removal of some provisions.
“The changes are deletions; we have no changes to the text,” said the president in plenary.
Shortly after Lira’s statements, the rapporteur of the reform in the Chamber, deputy Aguinaldo Ribeiro (PP-PB), made his opinion available, reinforcing that it preserves the structure of the proposal, and maintained adjustments made by the Senate — the curb on the tax burden and benefits to the automotive sector. Aguinaldo also stated that the controversy involving the Manaus Free Trade Zone had been resolved.
“In view of the strong rejection of the idea of taxing the other units of the Federation with a Cide, with the aim of increasing the competitiveness of the Amazon region, and also directing the resources of this tax to the same region, a consensus was reached to change the ZFM’s benefit model, maintaining the region’s competitive advantage with the use of IPI and not Cide”, explained the deputy, in the report.
The Senate reform rapporteur, Eduardo Braga (MDB-AM), who participated in the negotiations to construct the text under discussion this Friday, stated that the result of the discussions “resolved” the issue of the ZFM impasse.
“In this way, it was possible to build the solution that is now being approved, we hope, as a result of agreement and understanding between the leaders of the Chamber and the Senate so that the IPI is, therefore, the instrument for maintaining the competitiveness of the ZFM”, explained the senator.
As it is a PEC, the proposal must go through two rounds of voting and, on both occasions, receive at least 308 votes in favor.
(Reporting by Maria Carolina Marcello; additional reporting by Ricardo Brito)
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