Expected to advance after elections, tax regulation has already received more than 1,200 amendments in the Senate

The main regulation project has already received 1,206 amendments since it reached the Senate. Under analysis in , the text should only advance after the municipal elections, which will have the second round on October 27th.

The rapporteur of the proposal is the senator and it is up to him to accept or reject the suggested amendments. Despite still being at a standstill at the CCJ, the project has been discussed in public hearings by the Economic Affairs Commission (CAE), which set up a working group to analyze the text.

Leader of the Republicans in the House, Mecias de Jesus (RR) was the senator who presented the most suggestions, with 131. Senator Izalci Lucas (PL-DF) presented 108 amendments – he is coordinator of the working group that analyzes the proposal in the Committee of Economic Affairs (CAE).

At least 25 amendments presented by parliamentarians aim to change the standard rate, with total exemptions or differentiated charges for specific sectors or products, such as biofuels, hotel activities and cooperative services.

Last year it created the Tax on Goods and Services (IBS), which is the responsibility of states and municipalities, and the Contribution on Goods and Services (CBS), which is federal. Together, the single rate is calculated at 26.5%, which may vary higher.

Among Mecias de Jesus’ suggestions, for example, is a limit on tax collection for app drivers. “These professionals are currently exempt from ISS (Service Tax) in municipalities such as São Paulo and Rio de Janeiro, and the new taxation, estimated at 26.5%, would represent a significant burden for the category”, stated the senator.

Cesta básica

At least 12 amendments presented so far call for changes to the list of foods that are included. The project approved by the Chamber provides for 22 items in the basket, which will be exempt from CBS and IBS.

An amendment by senator Jorge Seif (PL-SC) calls for the inclusion of juices without added sugar and preservatives, as well as fungi and nuts. Other items suggested by senators for inclusion in the basket are: yerba mate, pork and poultry fats, canned sardines and tuna, seasonings and natural honey.

Sin Tax

The Selective Tax (IS), also known as , was created by the new reform and will apply to the production, extraction, sale or import of goods and services that are harmful to health or the environment.

The text approved by the Chamber provides for the application of IS to vehicles, cigarettes, alcoholic and sugary drinks, vessels and aircraft, extraction of iron ore, oil and natural gas. Deputies also included electric vehicles, betting and physical and online gambling in the charging list.

During the votes in the Chamber, some benches tried, but the change was not approved by the plenary. In the Senate, some amendments call for the inclusion of these items in the Sin Tax list.

Senators also presented amendments calling for the removal of sugary drinks, craft alcoholic beverages and vehicles from the list of items taxed by the IS,

Emergency regime

Due to the urgency deadline, the text needs to be approved by September 22 to avoid blocking the Senate’s voting agenda, but the consensus among senators is that the project will only be voted on after October.

A CNN found that the senators’ assessment is that the government now needs to decide and agree with Pacheco to withdraw the emergency regime.

Second project

The other project on the regulation that deals with the IBS Management Committee is still awaiting completion of analysis in the Chamber. Deputies approved the proposal in August, but still need to analyze the highlights (suggestions for changes to the text). After the vote is completed, the project will also be forwarded to the Senate.