Originally published in the May 7 edition of World Tax Daily (Copyrights Tax Analysts – www.taxanalysts.com)
Brazil’s House of Representatives on April 23 created a special House commission to review the 2008 tax reform (Constitutional Amendment Project No. 233/2008, or PEC 233). The bill is expected to be voted on in the House this summer.
The special commission’s review is PEC 233’s second step toward approval by the House of Representatives, following the April 3 approval of its constitutionality by the House Commission of Constitution and Justice.
The special commission will vote on the material aspects of the tax reform. It has elected as its president former Finance Minister Antonio Palocci, and lawmaker Sandro Mabel will deliver the commission’s opinion.
The special commission will hold 40 sessions to review the tax reform bill before submitting it to a review and vote by the full House.
Mabel believes the reform bill will be ready for a House vote before the end of June. He believes that in contrast with past tax reform efforts, which were largely unsuccessful, the 2008 tax reform won’t face strong opposition in Congress, because although it makes some changes to Brazil’s tax system, it does not address issues such as tax rates and revenue sharing.
The first session of the special commission is expected to take place the week of May 5.
David Roberto R. Soares da Silva