Reform reduces tax burden and does federal justice, says Appy
Source: Agência Câmara, 24/06/2009
The Secretary of Economic Economic Reform of the Ministry of Finance, Bernard Appy, said in the Chamber that the government's objective in tax reform is to promote “federal justice”, transferring resources from rich states, which concentrate production, to poor states, which have lower production and a large number of consumers.
This is the reason for the change in ICMS taxation, which, according to the reform, is now charged at the destination (where the product is sold) and not at the origin (where it is produced).
Appy also stated that the version of the reform approved in November last year by the special commission of the Chamber reduces the tax burden by approximately R $ 16 billion in 2021, when it will be fully implemented.
According to him, the moment of international crisis is not an obstacle to the approval of the reform, because it will have few immediate impacts, having more significant effects only after two years. In addition, according to him, the text will improve the expectations of economic agents.
The secretary responded to criticisms that point to the concentration of tax legislation in the Constitution, if the proposal of the rapporteur, deputy Sandro Mabel (PR-GO), is approved in the Plenary.
For Appy, there would be no way to approve just one constitutional amendment with fundamental tax guidelines in the constitutional amendment and the details of the rules in ordinary legislation, because "the simultaneous solution of several issues is required".
For example: the change in ICMS taxation from source to destination must be accompanied by a compensation mechanism for states affected by the new rule.
Appy participates in a public hearing on tax reform (PECs 233/08, 31/07 and others).
The debate, promoted by the Commission for Economic Development, Industry and Trade, is being held in plenary 5.