Cutting tax benefits advances in the Chamber of Deputies

Cut in tax benefits advances in the Chamber of Deputies

PLP 182 is one of the projects that provides for a reduction in tax incentives. The proposal's rapporteur is deputy Mauro Benevides (PDT-CE), who is also the author of a similar project, ready to go to the plenary. The good news is that there is no mention of changes to the rules of Simples Nacional

Silvia Pimentel

(Photo: Zeca Ribeiro/Agência Câmara)

Three complementary bills (PLPs) that aim to cut federal tax benefits and incentives and establish rules for new concessions gained traction in the Chamber of Deputies.

Two of the proposals are already ready to go to the Chamber plenary: PLP 41/2019, by senator Espiridião Amim (PP-SC), and PLP 128/2025, by deputy Mauro Benevides (PDT-CE). Benevides is the rapporteur of the third project, PLP 182/25, sent by the government to the Chamber at the end of August, whose report should be presented next week.

To rebuild the budget, committed to overturning the MP that increased the IOF, the government is in a hurry to approve the reduction of tax subsidies this year. In 2024, the values reached R$564 billion, which corresponds to 4.8% of GDP, according to data from the Union Subsidies Budget, a document prepared by the Ministry of Planning and Budget.

For micro and small companies, the good news is that in all the proposals that provide for the review of tax benefits, there is no mention of changes to the Simples Nacional rules, identified as the main federal tax expense in official reports.

However, companies that calculate their taxes using the Presumed Profit regime are apprehensive about the processing of the government's PLP 182, which has a controversial article providing for a 10% increase in the IRPJ and CSLL calculation basis on revenue that exceeds R$1.2 million per year.

In an interview with Diário do Comércio, the rapporteur, deputy Mauro Benevides (PDT-CE) said that he has not yet looked into this article and that there is a chance that it will not be included in his report. The text will only be completed after a meeting with the Minister of Finance, Fernando Haddad, and the president of the Chamber of Deputies, Hugo Motta, this week.

“It is necessary to discuss with the government which proposal is most palatable to go to plenary”, he informed. According to the parliamentarian, the government's proposal has points that differ from the project he authored, such as the immediate 10% reduction in tax benefits – PLP 128 foresees 5% in 2026 and 5% in 2027 – and the non-inclusion of credit and financial benefits in the cuts. One of the possibilities, he informed, is to include these types of benefits in the reductions in the PLP 182 report.

Bigger load

In general terms, the government project establishes a linear cut of 10% in federal benefits and incentives of a tax nature, reaching PIS/Cofins-Importation, Social Security Contribution on Gross Revenue (CPRB), Import Tax (II) and Tax on Industrialized Products (IPI). For the Union's coffers, the impact generated by the proposal is estimated at R$ 19.8 billion, if approved.

In the view of tax lawyers, the project will result in an indirect increase in the tax burden for companies opting for real profit and presumed profit, affecting industries, importers and commerce.

“The declared objective is to increase revenue and reduce the volume of government “tax expenditures”, without completely eliminating benefits. The project fails to carry out an adequate analysis of the function and results of public tax relief policies”, says Eduardo Lourenço, partner at Maneira Advogados.

In the tax expert's view, many of these benefits are not mere “tax expenses”, but economic and social policy instruments aimed at keeping the price of essential products accessible to the population.

By linearly reducing incentives applied to the food production chain, agribusiness and other strategic sectors, Lourenço highlights, the proposal tends to increase the cost of basic goods, with direct impacts on inflation and family purchasing power.

In the case of the proposed increase in presumed profit for companies, the criticisms are even more scathing. “The increase in presumption percentages is equivalent to a true increase in burden disguised as a benefit limitation, distorting the constitutional foundation of EC 109/21”, criticizes the tax expert.

Fredy Albuquerque, consultant at Volk & Giffoni Ferreira, former advisor to the Administrative Council for Tax Appeals (CARF), also predicts price increases.

“Companies tend to pass on tax costs to product prices, under penalty of significant loss of competitiveness. But there are collateral impacts, such as the necessary immediate readjustment of compliance with ancillary obligations in operations, in addition to the possibility of making the tax system even more complex and insecure”, he says.

For the tax expert, the impacts on companies are evident and consist of a significant reduction in their operating margins, due to the loss of benefits granted by law in the past as an incentive for national economic activity, necessary in periods of crisis, and also as a way of maintaining jobs.

“With this re-encumbrance of the tax bases, the fiscal cost of taxpayers’ operations – currently quite significant – becomes even more challenging and leads companies to readjust prices, with inflationary impacts”, he highlights.

Other proposals

PLP 128, by deputy Mauro Benevides, proposes a gradual reduction of 10% (5% in 2026 and 5% in 2027) in federal tax benefits granted in 2024, including financial and credit benefits, which reach, respectively, R$65 billion and R$49.8 billion, according to the report presented by the special subcommittee on tax exemptions, of the Finance and Taxation Commission (CFT), of the Chamber of Deputies.

The text also defines new rules for the creation of tax exemptions, such as a maximum limit of five years and a ceiling of 0.2% of GDP for the total benefits granted.

PLP 41/2019, by Senator Esperidião Amim, establishes objective criteria, performance targets and procedures for granting, changing and periodically evaluating the economic-social impacts of incentives or benefits of a tax, financial or credit nature for companies. The proposal's urgency request was approved in July this year.

https://dcomercio.com.br/publicacao/s/corte-de-beneficios-fiscais-avanca-na-camara-dos-deputados