Rapporteur conditioned income tax cut on high collection

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To try to overcome resistance from states and municipalities, the project to reform the Income tax it will contain a device to link a part of the expected drop in the tax charged from companies to a collection target, according to the rapporteur, deputy Celso Sabino (PSDB-PA), anticipated to the Estadão.

The proposal was presented yesterday by him to state finance secretaries and to the National Confederation of Municipalities (CNM). According to Sabino, the mechanism would serve to avoid loss to state and municipal coffers with changes in the IR – whose collection is shared with the Union.

Critics of the project, the regional governments presented an account that shows a loss of at least R$ 27.4 billion in revenue with Sabino’s initial opinion. In other words, they would be responsible for most of the project’s lost revenue, estimated at R$30 billion in total.

Sabino’s report predicts a 12.5 percentage point cut in the corporate income tax rate in two years – 10 points in 2022 and another 2.5 points in 2023. dividends, exclusive funds and the end of the possibility of deducting Interest on Equity (JCP), in addition to the end of exemption from housing allowance and food for public agents, would easily cover a reduction in the rate of 7.5 percentage points .

The other 2.5 points would be linked to the increase in collection adjusted for inflation. Sabino explained that, in this way, it would be possible to start with the 10 percentage points drop foreseen in the project for 2022, since it is likely that the collection in 2022 will remain at a level higher than this year’s.