On April 29, Deputy Celso Sabino (Partido de la Social Democracia Brasileña – allied to the ruling party), who represents the Special Subcommittee on Tax Reform of Deputies, submitted the work plan that will guide the activities of this space during the coming months. The purpose of the subcommittee will be to study and propose suggestions for potential tax reform in Brazil. According to Rodrigo Maia (Demócratas – ally of the ruling party), president of the Chamber, Congress will study the tax reform proposals after passing the Government’s Pension Reform, which is still being studied in committee.

The rules of the Chamber of Deputies allow each committee to have up to three permanent subcommittees and three special subcommittees to study specific issues. The Tax Reform subcommittee belongs to the Finance and Taxation Committee of the Congress, and although it does not have decision-making power, it will allow the deputies to promote an agenda to define the guidelines that will shape the debate on the reform proposals in committee. Thus, according to the work plan presented, which includes a summary of activities planned for the next three months, public hearings will be held in the five regions of the country.

The agenda foresees debates with government representatives and with the authors of two proposals to simplify the tax system. According to what has been agreed, the initiatives of former deputy Luiz Carlos Hauly (PEC 293/04), who seeks to create a single federal tax, and of deputy Baleia Rossi (Brazilian Democratic Movement – allied to the ruling party), who proposes to unify taxes on consumption, creating the so-called “Tax on Goods and Services Operations” (PEC 45/2019), will be considered.

The president of the Chamber, Rodrigo Maia, affirmed that they will not seek to “approve a tax increase” and that the focus of the deputies is now on the study of the Pension Reform. It is expected that once this proposal is passed, Congress will move forward in the tax reform debate, which will happen in the coming months.