The advances of the tax reform in Brazil. President Bolsonaro empowers Economy Minister Paulo Guedes. And a senator is shot twice during a police strike in Ceará.
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Tax reform process kicks off in Congress
Congress took its first step toward passing a tax reform, with the creation of a special committee on the matter including 25 members each from the House and Senate. The Brazilian Report’s Brasília correspondent Brenno Grillo heard from congressmen that the idea of creating a value-added tax is highly consensual.
Simplification. This new tax would result from the unification of three federal charges — tax on manufactured goods (IPI) and social security contributions PIS and Cofins — as well as the state goods and services tax (ICMS), and municipal services tax (ISS).
Yes, but … State administrations fear they risk handing control of tax collection over to the federal government. Besides not wanting to lose revenue, governors fear that an emboldened Federal Revenue Service could be used politically — leaking compromising information on detractors, which has already happened in the past).
Why it matters. The government has elected the tax reform as the main focus of...