Since being approved in a fast-tracked vote in the House back in July, a major tax reform bill sponsored by the Luiz Inácio Lula da Silva administration has been cooling in the Senate, where it is more extensively discussed.
Senator Eduardo Braga, the bill’s rapporteur in the upper house, has pledged to present a draft to lawmakers on October 24, after postponing it three times. He believes a floor vote could happen by November 9, at the latest.
“We are working to conclude a first version by the end of today or early tomorrow,” Mr. Braga told reporters this Wednesday after a meeting with Finance Minister Fernando Haddad. “I’m very optimistic about getting a first draft by then.”
A rapporteur is responsible for presenting something close to a final version of the bill, incorporating amendments and suggestions introduced by his peers. Mr. Braga has said he needed the extra time for public hearings with fellow lawmakers and stakeholders, such as governors and representatives of different business sectors.
Senators have submitted more than 520 amendments for Mr. Braga to review. Several were drafted by the opposition, but some were written by lawmakers friendly to the government.
As a constitutional amendment, the tax reform can only become a reality if both congressional houses agree on the exact same text. Meaning that any changes made in the Senate will require another two-round vote (and 60 percent majority) in the House.
The tax reform is as much about power as it is about money. As we explained in our YouTube show Brazil This Week, the bill mostly removes from state governments the ability to impose different tax rates on products and services.
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