Tax Reform must be done to relieve the citizen, says the draftsman of the proposal

Senator Roberto Rocha highlighted the high prices of products such as fuel and electricity, pointing out the need to reduce taxes on them

Photo: Marcos Oliveira/Senate AgencySenator Roberto Rocha (PSDB-MA) hopes to guide the Tax Reform at the CCJ next week

A Proposed Constitutional Amendment (PEC) 110, call of Tax reform, aims to reformulate the taxes that affect consumption, forming two new tributes, one federal and the other from states and municipalities. The text is opposed by mayors and the service sector. In an interview with Jornal da Manhã, the senator Rocha rocha (PSDB-MA), rapporteur of the proposal spoke about the subject. For him, the reform is important to be done to relieve the citizen, especially the poorest who, according to him, end up paying more taxes, proportionally. “All the work and effort that we have been performing in the last three years has as the sole and exclusive beneficiary the citizen, who is the one who ultimately pays the tax. Companies don’t pay taxes, they transfer the tax to the price. In some products this is easier to do, such as energy, oil, fuel, telecommunications. Hence the appeal that Brazilians make to be able to improve the price of these products, which, by the way, is growing all over the world”, stated Rocha.

According to the senator, PEC 110 deals with the consumption tax base, creating two new taxes. Initially, there was the possibility of creating a single tax, which was made impossible by the large proportions of Brazil. “We don’t deal with income, we deal with consumption, which is the largest tax base in Brazil. Unlike the United States, here we have more than half of the tax revenue from this consumption base, where indirect taxes are. And, of course, it ends up that the poor, proportionally, pay much more tax in Brazil than the rich. In the consumption base are PIS, CONFINS, IPI, ICMS, ISS, which we tried to create at first a single tax, the VAT, which is the value-added tax, already used in more than 170 countries around the world. Due to its territorial, population and economic dimensions, Brazil’s difficulties were not possible. At one point, he choked completely on account of two facts. One, the development fund that would be financed by the Federal Government, which did not accept. And the second in function of the management committee. Who would manage these trillions of reais?”, he asked.

According to Roberto Rocha, the PEC is in the Constitution and Justice Commission (CCJ) to Federal Senate, waiting for the president Davi Alcolumbre (DEM-AP) put it on the agenda. “I hope this happens next Wednesday, that Alcolumbre is scheduled so that we can read my report and have a week’s view. At the same time, we have had a lot of dialogue with all the senators and those involved. Then the president of the Senate, Rodrigo Pacheco, has already declared a commitment to take it to the Senate floor. Voted at home, the project goes to the Chamber of Deputies, where it is already well known, because we have, in all these months, talked to all deputies, especially the president Arthur Lira and with the government leader, Ricardo Barros“, pointed out the senator.

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