Union will define reform


Author: Edna Simão

Source: Correio Braziliense, 06/09/2007

From the Courier team

[Ronaldo de Oliveira / CB - 16/5/07] Bernard Appy, from Fazenda: chances of approval in CongressThe desire of the federal government to approve the long-awaited
tax reform until the first half of 2008, or better, before the
municipal elections, is increasingly distant. The government worked with
possibility of forming an agreement between the states within the scope of the Council
National Policy on Farm Policy (Confaz) to end fiscal incentives, the
that didn't happen last Tuesday. Establish the cutoff date for
incentives that will continue to apply and the term in which the benefit will end, for
example, are some of the points where consensus is being difficult.

Now, according to Economic Policy Secretary Bernard Appy, the government
will be obliged to arbitrate the matter, establishing the rules and negotiating the
approval by the National Congress. “The Union will have to arbitrate and set a date
cut for the validation of tax incentives. What could be defined
by consensus, it will now be by constitutional amendment. This is not a threat to
states ”, highlights Appy.

The tax reform proposal should be sent by the end of the month
to parliamentarians. Next week, however, Finance Minister Guido
Mantega, should meet with governors of the northeastern states to try
move forward in negotiations. On the next 20th, it will be Appy's turn to have a new
talk to state secretaries. The Secretary for Economic Policy
believes that, even without the agreement between the states, the federal government has great
chances of approving the reform proposal in Congress. “The agreement was not only
approved at Confaz because unanimity is required. Only four secretaries
state officials have spoken out against the agreement, ”he says.

Appy also pointed out that the idea of ​​creating a
Regional Development (FDR) - consideration that will be offered at the end of
fiscal war. This fund would be created from next year, if there were
agreement between states regarding tax incentives. How does that not
happened, the instrument will be instituted only when the tax reform is
implemented. "If the states had entered into an agreement and approved the agreement,
this policy would certainly have to be implemented from 2008 onwards.
it means that the government is withdrawing the FDR proposal. What are we saying
is that the implementation of the fund is conditional on the end of the fiscal war,
by agreement or by tax reform. By agreement it would be faster, the
reform will depend on the approval time and how it will be done by the
Congress, ”he said.

New proposal

During the last Confaz meeting, the states presented a proposal for
that two legislations be established for Value Added Tax (VAT),
one state and one federal. The Treasury's proposal was to have both IVAs, but
a single legislation. “From a technical point of view, the ideal would be the proposal
federal government, but from the political point of view it may be that the
governors is feasible. Our goal here is to solve problems ”,