On Thursday (11) the Chamber approved an amendment by the Senate to the Bill 2105/07, proposed by the Executive Power, which creates the Unified Taxation Regime (RTU) for the terrestrial import of wares from Paraguay. The bill had already been approved by the Chamber in March 2008, but returned after having received amendments by the Senate. After its definitive approval, the proposal will be forwarded to presidential sanction.

The amendment exempts from Tax on Industrialized Products (IPI) the free trade areas of Tabatinga (Amazonas state), Guajará-Mirim (Rondonia state), Brasiléia (Acre state) and Cruzeiro do Sul (Acre state). Other four amendments were rejected.

The original bill, proposed by the Executive, substituted MP 380/07, known as Sacoleiros’ MP, which was revoked by the government in September 2007. The bill tries to legalize micro-entrepreneurs who import products from Paraguay for a living, and should benefit only small companies belonging to Simples Nacional (Supersimples), currently with maximum revenues limited to R$240,000.

Unification
RTU, whose rate is 42.25%, will not represent a reduction in rates. The bill just streamlines the collection of taxes and federal contributions on imports, made an only time, from the companies that opt for the new regime. The interested states may integrate the value-added tax (ICMS) to RTU, by means of an agreement with federal government.

The single rate of 42.25% on the acquisition price of imported wares corresponds to 18% for Import Tax (II); 15% for Tax on Industrialized Products (IPI); 7.6% for the contribution for the Social Security Financing
(Cofins); and 1.65% for the contribution for the Social Integration Program (PIS).

Limits
The Executive Power should elaborate a list on the products whose import is allowed, as well as the amounts and the quarterly or semi-annual flow in which they can be imported. That list of products and their respective amounts can be reviewed according to the impact it can cause on Brazilian economy.

Report - Marcello Larcher
Editing - Marcos Rossi
Translation – Positive Idiomas Ltda