Government speaks about agreement among leaders, but opposition thinks voting is rash, and threatens with a new substitution text.

The leader of the government, Henrique Fontana (PT-RS), said on Wednesday (18), that the allied Basis is prone to vote the tax reform using time gaps at the agenda of the House – which would arise during the deliberation of provisional measures, in the last two weeks of March and the first two of April.

The announcement was made right after the meeting of leaders with the rapporteur of the bill, Deputy Sandro Mabel (PR-GO) and the Extraordinary Secretary on Economic-Tax Reforms of the Finances Ministry, Bernard Appy. “Our pace is fast. We are in the same pace as PAC, regarding the tax reform”, affirmed Fontana.

The opposition, though, continues to affirm that, since the proposal is not “mature”, it is unwise to vote it next month. “It is much more important for each party to make their homework [seeking internal consensus]. We are making ours”, said the vice-leader of the political party DEM, Eduardo Sciarra (PR), who represented that political party at the meeting.

Patchwork
The vice-leader of PSDB, Duarte Nogueira (SP) says that the substitution text by Sandro Mabel to the bill, approved by a special committee at the end of last year, became useless. “The volume of proposed amendments transformed the current text in a kind of patchwork. PSDB wants a reform which streamlines tax system, disencumbers productive sector to foster employment and income, and ends up with fiscal war”, he affirmed.

The caucus of PSDB works with the hypothesis of presenting an alternative text to the version of Mabel in the House. “The rapporteur said that there is no margin to change the text. Thus I think that it should get off the hands of the rapporteur and go to the leaders collegiate, for them to make a substitutive global amendment”, said Luiz Carlos Hauly (PSDB-PR). That alternative would demand the signatures of leaders representing 308 deputies.

The party is thinking on discouraging a constitutional tax reform, such as the one reported by Sandro Mabel. “The tax system could be streamlined by the complementary and ordinary law”, said Duarte Nogueira. “But we do not want to impeach the discussion of tax reform, because it is important for Brazil. But not whatever kind of reform”, he pondered.

Balance
During the meeting, Bernard Appy presented to the parties’ leaders forecasts with the scenario after the total implementation of tax reform, according to the substitution bill by Sandro Mabel(PR-GO). The study indicates that the productive states would have a yearly loss of R$16.4 billion (around US$ 7 billion) caused by the change on rules on the Sales and Services Tax (ICMS). On the other hand, they would benefit the same amount by means of the Income Equalization Fund (FER), fed by the Union.

The consuming states, though, especially in the North and Northeast, would earn R$9.5 billion (approximately US$ 4 billion). They would receive nothing from FER, but would keep that surplus on collection.

The opposition, though, did not trust the figures. “We wanted details, but they did not have”, complained Luiz Carlos Hauly (PSDB-PR). “For the opposition, even general data are not enough”, replied Sandro Mabel (PR-GO). “They want data split by state and municipality. That’s impossible”, said the rapporteur.

Report - Edvaldo Fernandes
Editing - Maristela Sant'Ana
Translation – Positive Idiomas Ltda