The Chamber of Deputies approved the tax reform (PEC 45/19), which simplifies taxes on consumption, provides for the creation of funds for regional development and to finance ICMS credits until 2032, and unifies the legislation for new taxes.
According to the proposal, a complementary law will create the Goods and Services Tax (IBS), to encompass ICMS and ISS; and the Contribution on Goods and Services (CBS) to replace PIS, PIS-Importation, Cofins and Cofins-Importation.
The tax reform will allow the adoption of the selective tax by provisional measure immediately. As for IBS (state and municipal) and CBS (federal), which depend on a complementary law to create them, the text allows the collection of CBS from 2026 at a rate of 0.9% and 0.1% of IBS at adaptation title.
From 2027, CBS will definitively replace the four Federal taxes on goods and services: PIS/Cofins and PIS-Importação/Cofins-Importação, finalizing the compensation.
ICMS and ISS transition
As for ICMS and ISS, the transition will occur through a gradual reduction in their current rates, reducing the associated benefits and incentives in equal proportions. Thus, the rates will be equivalent to the following proportions in force each year:
90% in 2029;
80% in 2030;
70% in 2031;
60% in 2032.
From 2033 onwards, ICMS and ISS will be abolished. Likewise, for the period from 2029 to 2033, the Senate will stipulate the IBS reference rates in order to make up the tax burden reduced from current taxes. None of the taxes will be part of the calculation basis of the other.
Free Zone and IPI
From 2027, the IPI will have a zero rate for all products that are also industrialized outside the Manaus Free Trade Zone (ZFM), which will continue to take advantage of credits from this tax, for which it has an exemption, until 2033, when it will be extinguished. and replaced by selective tax.
Basic basket
One of the new features in relation to all the versions already presented, since the subject has been addressed over the decades, is the exemption from IBS and CBS on products from a national basic food basket, to be defined in a complementary law.
Cashback
The mechanism for returning taxes to individuals will also be detailed in the complementary law, including the limits and beneficiaries, with the aim of reducing income inequalities.
This return will not be considered in the calculation basis of constitutional obligations for health and education, for example, nor in the distribution of states to municipalities, or even in the concept of net current revenue in the case of the Union.
Source: Câmara de Notícias Agency
