Tax reform rapporteur meets with ruralist bench, listens to demands and says he is open to negotiating

Valor Econômico reported that the tax reform rapporteur in the Chamber of Deputies met this Tuesday (28/2) with representatives of the Parliamentary Agricultural Front (FPA). The report highlights that Dr. Eduardo Lourenço, partner at Maneira Advogados, presented the rapporteur with a list of the Front's main concerns regarding the possible increase in the tax burden for the sector.

Tax reform rapporteur meets with ruralist caucus, listens to demands and says he is open to negotiating

The group has at least 300 parliamentarians and has opposed any increase in the tax burden for the sector

By Raphael Di Cunto and Rafael Walendorff, Valor — Brasília

02/28/2023

The tax reform rapporteur in the Chamber, deputy Aguinaldo Ribeiro (PP-PB), met this Tuesday (28) with deputies, senators and businesspeople from the Parliamentary Agricultural Front (FPA) in Brasília. He received the group's demands and concerns regarding the project, but avoided taking a position and promised to listen to the group to create the final text.

The ruralist bench was the first with which the rapporteur met. The group formally has more than 300 parliamentarians, and has opposed the increase in the tax burden for the sector. "It's a war of narratives to say that agriculture is undertaxed. We already pay and pay a lot of taxes", said the president of the FPA, deputy Pedro Lupion (PP-PR).

Lawyer Eduardo Lourenço, hired by the front, presented a list of the bench's concerns:

• single rate for all sectors;
• extinction of the presumed credit regime;
• single rate for agricultural inputs;
• end of exemption on basic food basket products;
• insecurity in the reimbursement of tax credits;
• treatment of cooperatives;
• possible incidence of selective tax on the food chain;
• form of taxation of biofuels that may discourage use;
• favor fossil fuels.

To the press, Ribeiro admitted that he already knew all of the bench's demands before the discussion around the proposed constitutional amendment (PEC) in the last legislature. "These are concerns that we have already addressed, that we are already aware of. We are attentive and open to collecting all suggestions", he said. "Now, as rapporteur, I cannot anticipate discussions on the merits. I have to respect the policy rite and wait for the discussion with the working group", he stated.

The rapporteur asked for the discussion to take place rationally and highlighted that it is important that the ruralist caucus, despite having its points of disagreement, supports the approval of a tax reform. “On a topic like this, I don’t believe it is possible to build consensus, but we will seek the support of the majority”, he commented.

Cashback

Ribeiro said that he will still meet with members of the Lula government to hear the economic team's proposals for the reform and that he needs to understand how the tax “cashback” system will work for the low-income population (which would replace the basic food basket exemption). According to him, the rural sector was not the only one to approach him with concerns about this, but also the retail segments, supermarkets and industry.

Lupion stated that the bench is concerned about this model and the impact of the end of tax relief on basic food products. For him, the increase could have a negative impact on the population's food inflation and job losses in the sector.

Member of the FPA and also of the working group that will discuss the reform, deputy Newton Cardoso Júnior (MDB-MG) stated that the most important thing about Tuesday's meeting was the political gesture of showing deference to the rural sector and listening to it first. “The gesture is very important, to show that agriculture will be considered in the discussions”, he said.

The emedebista told Valor that he will suggest to the rapporteur that he promote in the PEC the amnesty of debts from the Rural Workers Assistance Fund (Funrural) to garner political support for the proposal. Amnesty for these debts has been a demand for years on the part of rural producers. “Let's pass a ruler and play from now on”, he said.

(Photo: Deputy Aguinaldo Ribeiro (PP-PB) | Bruno Spada/Chamber of Deputies)

https://valor.globo.com/politica/noticia/2023/02/28/relator-da-reforma-tributria-se-rene-com-bancada-ruralista-ouve-demandas-e-se-diz-aberto-a-negociar.ghtml