Minister of Finance announces that the tax reform will have a 20-year transition period

Finance Minister Fernando haddad, said this Tuesday (28), during the March in Defense of Municipalities, that the tax reform will have a “soft” transition rule with a period of 20 years, in order to prevent municipalities from suffering losses of resources.

Haddad asked municipalities to be detached and united to approve the tax reform, aimed at changing the current system and fostering economic growth.

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He emphasized that this is not a “federal war” between states, municipalities and the Union, but the need, according to him, to place the citizen as a priority.

The minister also stated that the tax reform is one of the three or five most important measures for the country, along with the reform of the credit system and the new fiscal framework.

Partnership with the Ministry of Planning and the National Congress

Simone Tebet, Minister of Planning, also participated in the March in Defense of Municipalities and, in one of her speeches, stated that the mayors do not need to worry about the merger of the Tax on Services (ISS) with the Tax on Circulation of Goods and Services (

ICMS).

Currently, the ISS is managed by the city halls, while the ICMS is in charge of the state governments. According to Tebet, the tax reform will inject money into municipalities, not the other way around.

Furthermore, the minister stated that the reform will be beneficial for the industry, which will gain greater momentum.

“This tax reform is the only silver bullet we have. Although the reform keeps the tax collection equal for the first 20 years, it relieves the industry, makes the industry competitive”, she pointed out.

The rapporteur for the proposal, deputy Aguinaldo Ribeiro (PP-PB), said that Arthur Lira, president of the Chamber of Deputies Deputies, and Rodrigo Pacheco, President of the Senate, are committed and willing to approve the reform tax.

Ribeiro defended the initiative and placed municipalities as protagonists of the country's economic development.

“We have the challenge of not looking at each one for themselves, but of looking at the whole. And with this obligation, we have to understand that life takes place in the municipality”, he began. “We are talking about promoting wealth, generating jobs and income. This will make our economy grow and consolidate the Brazilian State as a strong country”, he concluded.

Graduated in History and Human Resources Technology. Passionate about writing, today he lives the dream of acting professionally as a Content Writer for the Web, writing articles in different niches and different formats.

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