Tag: taxation

Brazil is a world leader in drug taxation

Folha de S. Paulo - 19/08/2012

Among 38 countries, Brazil is currently the record holder in the level of taxation on drugs sold in pharmacies under prescription.

The sum of the federal and state tax rates on the product, of 28%, is three times greater than the average obtained between the countries of the study. Some, like Canada, Mexico and the United Kingdom, have a zero rate on medicines.

The finding is from an unprecedented study by researcher Nick Bosanquet, professor of health policy at Imperial College, London, who considered consumption taxes in each of the countries.

In Brazil, ICMS, a tax charged by the governments of the states, and PIS / Cofins, charged by the federal government were accounted for.

The ranking is part of a publication by Interfarma (Association of the Pharmaceutical Research Industry), which will be released tomorrow.

PERSONAL EXPENSES

The record level of taxation has a direct impact on consumers' pockets, since, in the Brazilian market, spending on medicines is not reimbursed by the State or by health plans, as occurs in developed countries.

In the Brazilian pharmaceutical market, whose revenue totaled R $ 42,8 billion in 2011, according to data from the IMS Health Institute, 71,4% of the disbursement is made directly by the population.

In European countries, 10% to 15% of spending is borne by the consumer.

"The consumer takes out of his own pocket to finance his treatment and still pays the highest tax in the world," says Antonio Brito, president of Interfarma. "The sum of the two situations is explosive."

The elimination of taxes on prescription drugs can increase sales by 2,5% to 5%, says the study.

This impact would occur mainly among low-income consumers.

IBGE data show that the disbursement of class E families for medicines is R $ 7 per month.

The richest spend R $ 97 a month, while the national average is R $ 38,60.

"These figures show that access to medicines depends exclusively on the Brazilian's income," says Brito.

ICMS

According to the tax attorney Bruno Coutinho de Aguiar, from the Rayes e Fagundes office, the great villain of taxation in the pharmaceutical sector is the ICMS.

The state tax rate is, on average, 17%.

"An essential product such as medicine has a higher rate than that of automobiles, for example."

Marcelo Liebhard, director of economic affairs at Interfarma, says that, in many states, the amount collected with the ICMS on medicines is higher than the amount spent by the government on the distribution of medicines.

"This occurs in São Paulo, where R $ 3 billion in tax is collected."

According to experts, the impeding price increases the demands in court asking for the supply of medicines by the government. It is estimated that there are 200 lawsuits in the Brazilian courts with this type of request.

Three questions for Hamilton Dias de Souza

The tax attorney and member of the ETCO Advisory Council Hamilton Dias de Souza gives details about the regulation of article 146-A, which entered into the Federal Constitution in 2003 to allow special taxation criteria to avoid tax competitive imbalances.

How can the regulation of article 146-A establish special tax criteria?

It is not the complementary law that will define the special taxation systems. It will only create the framework within which the Union, States and municipalities will be able to discipline these issues. Especially because, it is impossible to address this issue in the more than 5.500 municipalities that we have in the country. The work must be at the state or municipal level, where each one will create or deal with the matter according to their own legislation. It is worth remembering that article 146-A is not a standard that allows the collection of taxes. It is also not aimed at the interests of the tax authorities, but rather at protecting competition and the market.

Complementary law aims to prevent competitive imbalances from which source?

The complementary law aims to prevent imbalances caused by the taxpayer and not those caused by the tax authorities or by the tax rule. If there is a tax rule that, in itself, causes a competitive tax imbalance, it will be unconstitutional. It is, therefore, a matter of curbing deviations practiced by those taxpayers who, in one way or another, systematically fail to pay and hinder the market as a whole. They do not hinder the competitor, but the competition. Therefore, it is not a problem between individuals, but what is harmful to the market and the economy in general.

How to define criteria to establish the limit of tax incentives?

The limit, in my opinion, is that of free competition. If, through a tax incentive, a State reaches the point of affecting the market, it will inevitably be able to violate the principle of free competition, which is enshrined in article 170 of the Constitution. I am not against the incentive, but I believe that the parameters must be established by general clauses and this has to be verified in specific cases. If, at present, Confaz had a system capable of ascertaining the rationale of incentives, the definition could be more concrete and adequate.

Simplification of the tax system and law against unfair competition are discussed by experts

A meeting held by ETCO, in the last week of July, brought together representatives of the institute and the specialized press on the theme “Taxation and Business: Obstacle or Instrument for Development”. With the presence of tax attorneys Everardo Maciel and Hamilton Dias de Souza and the chief executive of ETCO, Roberto Abdenur, issues such as simplification of the tax system and regulation of article 146-A of the Constitution were discussed. 

Currently, the incidence of taxes accounts for 36% of the Brazilian Gross Domestic Product (GDP). This data alone should not cause so much concern, since, as is known, countries with a high level of development present even higher burdens. The issue becomes worrying when the tax burden is compared with the GDP per capita of these countries.   

    

The chief executive of ETCO, Roberto Abdenur, explains that "despite being vital for the country, the current tax system is considered as one of the main obstacles to economic development". Abdenur also highlights as one of the main impacts caused by the high tax burden on the economy, the increase in the cost of production in the industry, which discourages investments.

Data from the Federation of Industries of the State of São Paulo (Fiesp) show that, in Brazil, 64% of entrepreneurs point to the tax burden as a limitation of investments and 59% of them point to it as the main obstacle to innovation. The situation is even worse when this same load is assessed with the Human Development Index (HDI).

“While the Brazilian tax burden increased by 24,4% between 1994 and 2007, the HDI grew only 10,7%, which proves that the increase in taxes is not favoring the development of the population”, explains Abdenur.

Abdenur also mentions that, in Latin America, Brazil is the country with the highest tax burden. It is above Argentina (30,6%), which faces a long period of economic problems, as well as the region's average, which is 20,9%.

"By taking into account the bureaucracy of our tax system, according to a study by the World Bank, Brazil is also in a bad position," adds Abdenur. While in Switzerland - which has a similar load to that of Brazil - companies spend 63 hours to pay basic taxes, here the standard time is 2.600 hours, the worst in the world.

Former Federal Revenue Secretary and member of the ETCO Advisory Council Everardo Maciel presented one of the institute's proposals, whose main basis is to reduce bureaucracy.

For Maciel, there are some measures that can help in the process of simplifying and rationalizing the tax system. Among them is the unification of legal entities (CNPJ) in the federal, state and municipal registries. “We want to introduce this into the National Tax Code. It does not make sense for the same company to register in each of these units of the Federation ”, evaluates the former secretary of the Federal Revenue.

Another suggestion is that full anteriority be implemented. In other words, any change must have a deadline to be defined, which in the case of the ETCO proposal is until June 30 of the previous year. In the same vein, the institute suggests that the tax legislation for all taxes be consolidated by September 31.

The tax attorney and member of the ETCO Advisory Council Hamilton Dias de Souza presented the proposed regulation of Article 146-A of the Federal Constitution by means of a complementary law that may establish special taxation criteria, “with the objective of preventing competition imbalances, without prejudice to the competence of the Union, by law, to establish norms with the same objective ”. The intention is to allow states and municipalities to improve the competition of companies.

"This law does not create the criteria for taxation, but it allows the Union, States and municipalities to create them and it is up to a complementary law to create a framework for such taxes", explains Dias de Souza, who was one of those responsible for writing the article.

The good news, a warning and taxes

Source: The State of S. Paulo (São Paulo - SP) - July 23, 2012

by Roberto Abdenur *

The Underground Economy Index (IES) brings good news, a study that estimates the values ​​of activities deliberately not declared to public authorities in order to evade taxes and those of those who are in the informal sector due to excessive taxation and bureaucracy. In 2011 it represented 16,8% of the gross domestic product (GDP), which corresponds to R $ 695,7 billion.

The news is very good because, in the previous year, the estimated size of the HEI was 17,7% of GDP, or R $ 715,1 billion. The study on the IES has been carried out by the Brazilian Institute of Economics of the Getúlio Vargas Foundation, together with the Brazilian Institute of Ethics in Competition (Etco) since 2003, when the underground economy was estimated at 21% of GDP.

Between 2004 and 2006 the estimated size of this economy was around 20%. In 2007 it dropped to 19,5%, as a result of the increase in formal work. The economic situation in the country, the growth of class C and the good prospects for the future confirmed the trend towards formal employment. In 2008 and 2009, the HEI was 18,7% and 18,5%, respectively, which continued to confirm the trend towards a reduction in activities that are outside the formal economy.

Here comes the alert. Reaching the levels of developed countries - where IES is around 10% - seems distant, despite the number of 2011 (16,8%). It is that the downward trend may be temporarily reaching its limit in Brazil, due to the loss of dynamism in the economy and the reduction in the pace of credit growth.

The loss of dynamism in the economy is reflected in the prospect of a lower GDP. This tends to affect the labor market, which increases household indebtedness and makes credit difficult. The moment of wonder passed with the consumption of the new middle class, when realizing that everything depended on numerous installments to be honored.

In addition to the slowdown in the economy, the high tax burden is also a factor in the informalization of activities in the country. The current tax system raises the cost of industrial production, impairs internal and external competitiveness, discourages investments, decreases consumption, increases unemployment. , encourages tax evasion and, as a general result, contributes to informality and the underground economy.

Comparing tax burden and GDP per capita, Brazil is very poorly placed, according to data from the World Bank. Taxes in the country (36% of GDP) are at the same level as Russia, Ireland and Australia and exceed the United States and South Korea. But these countries have GDP per capita higher (three to five times) than ours. On the other hand, our taxes exceed those of countries like China and India, in addition to Argentina and Mexico, which have GDP per capita more similar to that of Brazil and compete with us.

Tax collection is vital for the State, but the tax system must be in harmony with other factors inherent to economic activity. In Brazil, in addition to the high tax burden, the problem lies in the complexity of paying taxes and the rigidity of legislation for those who work in legality.

Another World Bank study, called Paying Taxes, showed that, in 2008, a standard company spent no less than 2.600 hours a year to pay basic taxes in Brazil. It was the worst result in the world. In the United Arab Emirates, for example, it was 12 o'clock; in Switzerland, 63; in Venezuela, 864.

The time spent is a direct consequence of the complexity of tax legislation, which from 1988 to 2005 had an incredible 3,4 million rules issued. The delay in simplifying and rationalizing the tax system has been one of the biggest obstacles to the modernization of the Brazilian economy. To the extent that such complexity is used as a justification for tax evasion, it benefits transgressors, deteriorates the business environment, removes investments and reduces the country's growth potential.

A simpler system, on the contrary, encourages the productive sector, encourages consumption, promotes formal employment, raises workers' income, reduces tax evasion and reduces informality. At this stage, it is not a matter of promoting a broad tax reform - which may require years of debates and adjustments -, but of studying specific proposals that may have almost immediate results. Among these proposals are the unification of taxes and fees with the same calculation basis and taxable event, such as goods and services (IPI, ICMS, ISS), billing (PIS, Cofins), income (IR, Social Contribution) or imports (IPI , ICMS, ISS, Cofins, tariffs).

In view of the trend pointed out by the Underground Economy Index and the global scenario, a joint effort is now needed - between the Executive, Legislative and Judiciary Powers with society - to stimulate formality in the Brazilian economy.

We live in a unique moment in our economic history, favorable for the revision of a series of rules that, historically, prevent the healthy growth of our economy. President Dilma Rousseff's commendable effort to end the so-called fiscal war and move forward in the modernization of tax rules, as well as the institution of individual micro-entrepreneurs - just to mention two recent facts - are examples among countless proposals that must be evaluated and put into practice. practice.

It is clear that there is only one way to reduce the size of the shadow economy. And this path consists of five measures: improving the tax system, reducing tax evasion, reducing illegal trade and piracy, reducing the informal economy and, not least, fighting corruption. We have made progress on these fronts, but much remains to be done.

* DIPLOMATA, IS EXECUTIVE CHAIRMAN OF ETCO

Northern Santa Catarina mobilizes for less taxes

Source: Jornal de Santa Catarina (Blumenau - SC) - 31/05/2012

Sale of cheaper fuel this Thursday and proposals in the National Congress in defense of the reduction of taxes are among the initiatives

Almost 41% of Brazilian consumer income is expected to return to the government's coffers this year in the form of taxes, fees and contributions, according to estimates by the Brazilian Institute of Tax Planning (IBPT). The increase in the tax burden is the fourth in a row. It is as if people have to work until Wednesday to meet the needs of the public sector.

A series of initiatives are being taken in Joinville and Barra Velha to make the population aware of the weight of taxes in the families' budget. Groups of young entrepreneurs programmed the sale of fuel without taxes at stations in both cities;

- We are not against the payment of taxes, we just want there to be a better application of these resources by the governments. That is why we organized the Tax Freedom Day, to raise awareness in society so that it covers quality education and excellent health services. We paid nearly five months of tax work to the government. It is not fair that we still have to pay for private school or health insurance if we want to have a better life -, says Douglas Hoffmann, one of the coordinators of the action in Joinville.

Last week, representatives of the Efficient Brazil Movement (MBE), which preaches more efficiency in the use of public resources, were in Brasília to discuss the urgent need for tax reform. Joinvilense businessman Carlos Schneider, one of the leaders of MBE, spoke at the Chamber of Deputies, talking about the need to rationalize public spending.

The MBE coordinator, Paulo Rabello de Castro, presented a tax reform proposal to the Vice President of the Republic, Michel Temer, and to the Minister of Finance, Guido Mantega on Wednesday. The ideas are to simplify tax collection, improve public management and cut interest rates. The project foresees the reduction of the tax burden from 38%, this year, to 30%, in 2022.

The businessman Sérgio Rodrigues Alves, who chairs the Chamber of Tax and Legislative Affairs of Fiesc, gives a good example of how much taxes prevent Brazilian companies from being stronger.

- Today, the tax burden in Brazil represents 38% of GDP, while in China this rate does not reach 20%.

Initiatives for immediate changes in this situation are punctual. The executive secretary of the Ministry of Finance, Nelson Barbosa, confirmed Wednesday that the government is discussing simplifying the collection of PIS and Cofins, according to a proposal submitted by the business sector.

Senators

With a strong electoral base in the north of the state, senators Luiz Henrique da Silveira and Paulo Bauer defend actions that present proposals to reduce taxes in the country.

Earlier this week, in Brasilia, LHS reinforced a strategy to reduce taxes that may have an impact on urban mobility. According to him, this is an action that calls for integration between municipal, state and federal agencies.

Bauer defends two proposed amendments to the constitution (PEC). In a meeting, Wednesday, with the Minister of Health, Alexandre Padilha, the parliamentarian received support for the proposal that aims at zero tax on any medicine.

Today, Brazilians pay 34% of taxes. In addition, Bauer is the author of another action that provides tax incentives to companies that use recyclable materials.

- This mobilization makes it clear that the political class understands the importance of reducing taxes -, he says.

Invoice ride 2.0

Source: Info Exame (São Paulo - SP) - 22/05/2012

São Paulo - The Brazilian tax asylum offers a vast space for the performance of tax evaders. Only with regard to the tax on the circulation of goods and services (ICMS), each state has its own legislation, with a total of 3.500 rules in constant change.

In recent years, this tangle has become even more complicated with the worsening fiscal war between states and municipalities to attract companies and increase their revenue. It is easy to understand the appetite for ICMS. The tax collection has increased 33% since 2009 and approached 300 billion reais last year.

The main weapon used in the war is the offer to reduce the tax. As a result, there are more than 40 different ICMS rates in the country, varying from 4% to 25%. And what could be good - paying less tax - has become a fertile ground for crime.

The most applied scam is the tour of the invoice. A few years ago, scammers worked on real logistical engineering to defraud: departing from a producing state, goods traveled to states with less tax. The tour served to heat up the bill, registering the product as if it had been produced in the state that charges less tax.

Then, the good returned to the starting point, usually São Paulo, to be consumed. With the creation of the electronic note, a click on the computer became sufficient to issue the document - there are 180 million per month in the country. And then the 2.0 tour was born: the invoice virtually goes to other states, but the product does not move.

To simulate that something was produced in a distant state, just send the note over there and then do the reverse. By magic, the product “changes” in origin. "The difference in ICMS induces the dishonest to simulate a fictitious destiny", says Clóvis Panzarini, former coordinator of the São Paulo Finance Department.

Although some states and some companies can make gains from fraud, the country's economy can only lose. “The fiscal war promotes distortion in investment decisions, raises costs and harms companies that comply with the law,” says economist Paulo Rabello de Castro.

To try to end the war, the federal government is discussing with states the unification of interstate rates - today they are 7% and 12%. But the negotiation should take time. In the meantime, the note tour thrives, as shown in the following three examples, in the ethanol, medicine and steel markets.

Ethanol

Since 2007, to prevent fraud, the government has determined that the country's 16 refineries should centralize the collection of taxes on gasoline and diesel. Ethanol, however, because it is produced in hundreds of plants, has been left out - and has become the preferred target of dishonest distributors.

Fraudsters create distributors in states such as Goiás, where the ICMS rate is lower than that of São Paulo, the main producing state. "The scheme is set up with a company that is legally constituted, but in the name of oranges," says Alísio Vaz, president of the fuel distributors union.

The company only serves to simulate the passage of ethanol and issue the electronic invoice, obtaining the benefit of the lower tax. But only the note travels to Goiás. The fuel goes directly from the producer to service stations that participate in the scheme and, thus, offer ethanol at a low price - taking customers away from competitors who work in the legal sector.

The fraud, however, does not end on the note tour. Over time, fraudsters evade all taxes. When they are fined, they leave the distributor and start again with the name of another orange. Seven companies are currently under investigation - the National Petroleum Agency does not disclose which ones.

Pharmaceutical products

medicines are one of the products most affected by the invoice tour. The existence of 82 pharmacies scattered across the country - 000% of them small - and the sector's tight margins make it easier for the picks to act, as gains in the tax can increase the profit of traders.

Drug fraud is old, but it has recently incorporated technology. Until three years ago, the cargo and the paper invoice were a hit: they traveled from states that are producers, such as São Paulo and Rio de Janeiro, where the ICMS is heavier, even, for example, the Federal District, that takes a smaller toll.

Then, the cargo returned to its origin to be sold. Now, with a click on the computer, the electronic note is issued as if the cargo had completed the same path. The new scheme is called a merry-go-round: the bill makes a loop to reach the same place and the load is stopped. "The difference of a few percentage points encourages the wholesale banknote tour," says Ronaldo de Carvalho, owner of the Drogaria São Paulo chain.

Steel

Far from decreasing, the fiscal war between the states has evolved with new formats. What has gained more space recently is the offer of specific tax benefits for imported products. In ports like Itajaí, in Santa Catarina, and Vitória, in Espírito Santo, this started to be done to attract cargo from abroad and destined for other states.

Thus, a product that will be sold in São Paulo, instead of landing in Santos, uses a terminal in a state that charges lower ICMS. Companies that clear their imported products at these ports pay a small portion of ICMS to the state and receive a tax credit as if they had fully paid the tax.

The difference is charged to the destination state and turns into profit. In the steel distribution market, this new scenario of the fiscal war is leading to another trade-off: the international invoice tour. Dishonest distributors started to simulate that loads of Brazilian products came from countries like China or Italy.

But, in reality, only the invoice was issued electronically as if the steel had originated abroad. With the operation, the deceivers are able to sell steel at a price up to 8% cheaper than the market average, equivalent to 224 reais per ton.

"Depending on the tax credit obtained by the distributor in the port, the advantage in relation to the price of my product reaches 12%", says a businessman in the sector who asked for anonymity. The solution to end this type of coup is under discussion in the Senate: to define a single ICMS rate for imported goods.

"The port war sponsored by some states requires an urgent solution to end fraud such as the international tour," says Marco Polo Lopes, president of Instituto Aço Brasil.

Economists criticize stimulus measures announced by the government

Source: O Globo Online (Rio de Janeiro - RJ) - 21/05/2012

They say cuts have limited, short-term effects and advocate for deeper reforms

The economic incentive measures announced last Monday by the Ministry of Finance - reduction of IPI for automobiles and interest for some lines of financing from BNDES - may not generate the expected impact, according to economists. For them, the government may even generate some improvement in the short term, but this will not be lasting and may even increase the risk of an increase in default in the future.

Professor Armando Castelar, from UFRJ, believes that, given the weak numbers of economic activity, the government is right to propose stimulus to the economy. However, he believes that the repetition of the IPI cut model and reduction of interest on some BNDES lines may not have the expected effectiveness:

- I believe that we are close to the exhaustion of a model that had great success between 2005 and 2010, with the incentive to consumption based on increased financing. Families are very indebted. This model can generate future problems of default, which is already worrying even with employment and income and high. The government needed to ask itself why the economy is still skating, even with such low interest rates, and to review the model, looking for a way to encourage investment - said the professor.

He believes that more horizontal measures, such as reducing bureaucracy and taxes in a more linear way, could have more effects. Castelar even questions the BNDES 'interest reduction:

- This reduction has a greater impact on large companies. And entrepreneurs do not regret the lack of financing, but bureaucracy, tax and labor problems. The government needs to improve the business environment. The results may take a little longer, but it is something more lasting - he said.

Carlos Langoni, professor of economics at FGV and former president of BC, agrees that the measures may generate some short-term relief, but that this will not be enough. In his opinion, the government should take the time to resume an audacious reform agenda, focused mainly on tax reform.

- The government is using specific and selective incentives, which have a positive but limited effect. In addition, the total government effort has been to reduce interest rates. I don't think the problem is in demand, but in supply. The government needs to encourage investment, but Brazil currently punishes investment, savings and formal employment. The government could take advantage of the moment of the world economy, of a long stagnation of the developed economies and of a strong deceleration of the big emerging countries, like China, to vote on the tax reform, which would have great support from society - he said.

Professor Fábio Kanzuc, from USP, affirms that the positive impact of these repeated measures is less and less:

- The population is very indebted, measures like this are becoming increasingly inefficient. And, beyond the limit of the families' indebtedness, there is the limit of the cities, which are already full of cars - he said.

MP vote with distorted objective postponed

Source: DCI (São Paulo - SP) - 17/05/2012

About to lose its validity, the Provisional Measure (MP) 556/2012 proposed by the Executive to deal with tax exemptions and relax the bidding rules of the World Cup and the PAC yesterday had its vote postponed once again. It is that, in addition to this controversial topic, the proposal also alters the Security Plan for Public Servants, which is why it is rejected by the opposition and has been a reason for disagreement among leaders.

The MP's rapporteur, deputy Jerônimo Goergen (PP-RS), as a good governor, included all the Planalto's requests to expand the simplified bidding system, the so-called Differentiated Bidding Regime (RDC) for the works of the Acceleration Program do Crescimento (PAC) and for the construction of schools, daycare centers, health posts and sports courts.

The amendment that extends the bidding rules of the RDC World Cup and the Olympics for PAC works was sent at the last minute by the government and was the item that generated the most controversy among parliamentarians. The MP wins on May 31; therefore, if it is not voted on in the House and Senate before that date, it will have no validity. And he cannot be the target of another MP this year.

MP 556 was created to deal with tax exemptions and contributions for five sectors. But, after the initiatives of parliamentarians and the government itself, it will change the taxation of 16 sectors and give prerogatives to the Ministry of Finance.

Celerity

The RDC eases the rules of the Bidding Law in order to make public works more agile. It allows, for example, integrated contracting, in which the government hires a single company for the entire work (from the project to the finish) for a single price, without additives. In the bidding law, design and construction are different stages.

In addition, Goergen stressed that he will reject two points from the original MP: the increase in the Cide ceiling for fuel alcohol and the end of the presumed credit for the domestic agricultural market. He argues that the two measures will impose an unnecessary increase in costs for biodiesel producers and the Brazilian agricultural sector. The rapporteur assured that the changes were negotiated with the government, which would be more interested in guaranteeing the expansion of the DRC.

"The government has guaranteed that there will be no highlights or vetoes of some of the proposals made," he said. Goergen argues that the DRC will speed up the construction of daycare centers announced by President Dilma Rousseff. "This will give efficiency to the works", he defended. He met with representatives of the DEM and most of the opposition MPs, who were previously critical of the DRC, defend the approval of the Provisional Measure in view that it benefits farmers and ranchers with reduced taxes.

This is just one of about 15 changes proposed by the rapporteur. He included in the text several exemptions to sectors such as the production of yerba mate, drought irrigation equipment, and cereal companies that sell soy for biodiesel, among others. "It is important to highlight the economic effects of these proposals," he said.

MP 556 allows PIS and Cofins discount only to the industry that exports products originating from agribusiness and that have already had tax benefits. MP 552, from December 1, had ended this discount for all industries. Before MP 552, all industrialists could obtain this discount.

The government intends to return to the situation prior to December last year, that is, all industries will be able to obtain the tax discount even if they have purchased products that have already had tax benefits. The cost for businessmen and consumers is lower, but the government pays the bill. In Goergen's negotiation with the government, it was decided that the overpaid tax between December 1 and the publication of the law will be returned to industrialists.

If Goergen says he has the support of the DEM, the PSDB does not. Bruno Araújo harshly criticized the government's amendment that expands a system that changes the Bidding Law to speed up construction. “It is serious because the Bidding Law, says the government, does not apply to your works. The government wants a shortcut in the law that tries to make up for its general disability ”, said the PSDB leader. The toucan also criticized the “smuggling” of the proposal. "The discussion takes place in line, hitchhiking in another MP," said Araújo.

Law becomes exception

For the leader of the PSDB, deputy Bruno Araújo (PE), the government is wrong in trying again to approve such a complex issue through a provisional measure. He also criticized the emptying of the Bidding Law (8.666 / 1993).

“Imposing the RDC now on all PAC works is to make the bidding law an exception. This measure is harmful to control, demoralizes the Law and, above all, demonstrates the weakness of the government, which does not assume the authorship of the proposal ”, he said. In Goergen's accounts, if MP 556 is not voted on soon, there will be no deadline for the Senate to analyze the text. Then it would lose its validity.