{"id":89906,"date":"2024-07-05T15:18:08","date_gmt":"2024-07-05T18:18:08","guid":{"rendered":"https:\/\/murray.adv.br\/?p=89906"},"modified":"2024-07-05T15:18:10","modified_gmt":"2024-07-05T18:18:10","slug":"controversial-points-of-tax-reform-left-out-of-advisory-opinion","status":"publish","type":"post","link":"https:\/\/murray.adv.br\/en\/controversial-points-of-tax-reform-left-out-of-advisory-opinion\/","title":{"rendered":"Controversial points of tax reform left out of advisory opinion"},"content":{"rendered":"\n
Inclusion of meat in the tax-exempt basic basket still under negotiation<\/em><\/h6>\n\n\n\n

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07\/05\/2024 <\/p>\n\n\n\n

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\"Reginaldo<\/figure>\n<\/div>\n\n\n

Reginaldo Lopes \u2014 Foto: Lula Marques\/Ag\u00eancia Brasil<\/em><\/p>\n\n\n\n

After 40 days of debates, the advisory opinion of the rapporteur on the bill to regulate the tax reform introduced dozens of changes that were a consensus among the members of the Lower House<\/strong> working group\u2014and, therefore, also with the government, represented by Congressman Reginaldo Lopes<\/strong>. However, the most controversial points<\/strong> will still be decided in negotiations over the coming days.<\/p>\n\n\n\n

The working group provided Lower House Speaker Arthur Lira<\/strong> with a list of points lacking consensus, which need to be decided \u201cby vote.\u201d Among these points are the inclusion of meat and salt in the tax-exempt basic food basket<\/strong> (with a zero rate for the new VAT); the transition rules for car rental<\/strong> companies; the categorization of medicines<\/strong> with tax rates of 0%, 10.6%, and 26.5%; whether health insurance plans<\/strong> contracted by companies will grant them credit rights; the taxation of firearms<\/strong> with the Selective Tax (an excise tax); and the percentage of tax refunds (\u201ccashback reward\u201d) for low-income populations on water, electricity, and sewage bills.<\/p>\n\n\n\n

Mr. Lira, and the members of the working group themselves, will continue the negotiations now. A meeting is already scheduled for Monday at 6 p.m. with the Northern region\u2019s lawmakers to discuss the Manaus Free Trade Zone<\/strong> and regional aviation<\/strong>. In the case of the free trade zone, the group\u2019s intention is not to alter the bill sent by the government. For regional aviation, the group decided that only flights on routes with less than 600 passengers per day would have a reduced VAT rate of 15.6%. One of them told Valor the change was made at the airlines\u2019 request.<\/p>\n\n\n\n

On Thursday night, President Lula requested a constitutional urgency regime for the bill, an act published in an extra edition of Brazil\u2019s Official Federal Gazette This could accelerate the deadline for the parties to present amendments and cause the proposal to go directly to the plenary after 45 days, but the Lower House intends to vote on it before then. According to experts, the request mainly serves to demonstrate support for the reform\u2019s advancement and pressure the Senate to impose a faster pace on the proposal.<\/p>\n\n\n\n

Since the government sent the bill, the most controversial issue has been the items in the basic food basket, which will not pay any VAT. Products like rice, beans, and milk are on this list of 18 products, but the agribusiness lobby, supermarkets, and President Lula advocate for the inclusion of meat\u2014which is on the list to be taxed at 10.6% or, in the case of premium meats like salmon, at the full rate of 26.5%.<\/p>\n\n\n\n

There are also demands for less expensive cheeses and salt, but the working group members and Mr. Lira decided to share this decision with the plenary because, if accepted, it would increase the standard rate to 27.1%. Only one product was included in the basic consumer basket in the rapporteur\u2019s opinion: babassu oil, a moisturizer made from the plant of the same name that, in popular medicine, has anti-inflammatory and healing effects.<\/p>\n\n\n\n

According to Valor\u2019s findings, the reason for this choice was a political agreement among the legislators to include oils made from regional plants in the tax-exempt basic basket. With the removal of meat, the working group also preferred to exclude the oils, but Congressman Hildo Rocha insisted, and the product, very popular in Maranh\u00e3o and Piau\u00ed states, was the only one maintained.<\/p>\n\n\n\n

Another controversial issue is the taxation of medicines<\/strong>. There are three lists: tax-exempt drugs, mainly for cancer; those with reduced taxation, which will pay 10.6%; and others with full taxation, which includes dipyrone, paracetamol, and other anti-inflammatory drugs. The sector was pressing for price reductions, but the lawmakers preferred to keep the table as it is to avoid affecting the general rate.<\/p>\n\n\n\n

However, they made one change: Viagra<\/strong> (sildenafil), used for erectile dysfunction and pulmonary hypertension, would not be taxed in the government\u2019s version. The legislators decided to tax it at 10.6%. This was a coordinated move after protests from feminist movements in public hearings. Instead, they reduced to zero the tax on menstrual health items, such as sanitary pads<\/strong>.<\/p>\n\n\n\n

The controversial Selective Tax\u2014as the excise tax has been called\u2014created by the reform to discourage the consumption of goods and services harmful to health and the environment will burden electric cars, betting contests (lotteries, bets, and draws), and \u201cfantasy games\u201d (where the player simulates a sports team and wins or loses based on real-world results). Firearms, however, were excluded and will have the same taxation as a refrigerator or diaper, but this could still change through an amendment in the plenary. \u201cIt\u2019s much better to relieve food taxes than weapons,\u201d said Vice President Geraldo Alckmin on Thursday.<\/p>\n\n\n\n

The working group decided to keep the Selective Tax on boats<\/strong> and aircraft<\/strong>, cigarettes<\/strong> and tobacco<\/strong> products, alcoholic and sugary beverages<\/strong>, and extracted minerals<\/strong> (iron ore<\/strong> and oil<\/strong>), in addition to automobiles<\/strong>, but excluded trucks<\/strong>, regardless of the fuel used. \u201cBrazil is a road transportation country. This would go to freight. It\u2019s no use giving with one hand and taking with the other,\u201d said Congressman Claudio Cajado.<\/p>\n\n\n\n

The rapporteur\u2019s opinion also made changes to please sectors with many votes and facilitate approval. Bars and restaurants will now have access to the credit regime and be able to exclude delivery costs from the tax base. There was also a reduction in the tax burden for the construction sector\u2014a determination that public administration suppliers will only settle taxes after receiving payment\u2014, improvement in the credit system, and \u201csplit payment\u201d (which will automatically distribute taxes to states and municipalities and speed up tax credits for companies).<\/p>\n\n\n\n

*Por Raphael Di Cunto, Marcelo Ribeiro, Guilherme Pimenta, Beatriz Olivon\u00a0\u2014 Bras\u00edlia<\/p>\n\n\n\n

Source: Valor International<\/p>\n\n\n\n

\nhttps:\/\/valorinternational.globo.com\/\n<\/div><\/figure>\n","protected":false},"excerpt":{"rendered":"

Inclusion of meat in the tax-exempt basic basket still under negotiation 07\/05\/2024 Reginaldo Lopes \u2014 Foto: Lula Marques\/Ag\u00eancia Brasil After 40 days of debates, the advisory opinion of the rapporteur on the bill to regulate the tax reform introduced dozens of changes that were a consensus among the members of the Lower House working group\u2014and, therefore, also […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8106],"tags":[25246,25247],"class_list":["post-89906","post","type-post","status-publish","format-standard","hentry","category-murray-news","tag-controversial-points-of-tax-reform","tag-left-out-of-advisory-opinion"],"yoast_head":"\nControversial points of tax reform left out of advisory opinion - Murray Advogados<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/murray.adv.br\/en\/controversial-points-of-tax-reform-left-out-of-advisory-opinion\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Controversial points of tax reform left out of advisory opinion - 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