On September 18, Senator Roberto Rocha (Partido da Social Democracia Brasileira (PSDB) – allied with the ruling party) presented the draft report on the tax reform proposal to the Senate Constitution and Justice Committee. The vote on the report is expected to take place during the first week of October. Access the draft by clicking here.

Rocha supports the approval of the bill, and in the report introduced some modifications, incorporating a series of amendments submitted by the senators to guarantee the existence of special tax regimes, such as the Free Zone. The original proposal contemplated the unification of nine taxes in the IBS, being the Tax on Operations with Goods and Services, and the creation of the Selective Tax, which would come under federal competence. However Rocha made a suggestion in the text to merge five taxes and measures for social contributions under federal jurisdiction into one IBS; and merge two others which are of the state’s competence into another IBS. According to him, the measure would avoid an excessive concentration of taxes in the Federal Government.

If passed by the Constitution Committee, the proposal will go to the floor of the Senate, where it must be voted on in two rounds by at least 49 senators.