Federative Council will have criteria of population and number of states

One of the main recent impasses for voting on tax reform, the representation of states and municipalities within the Federative Council, is closer to being resolved. The Minister of Finance, Fernando Haddad, suggested that the votes in the future body, which will decide on fiscal and tax policies, will obey two simultaneous criteria: the number of states and the weight of the population of the states.

“We forwarded a proposal to the Federative Council. The votes will have to meet the criteria of population and number of states. To pass the council, (a proposal) has to have a majority of the states and a majority of the population”, explained Haddad this evening, after meeting with the tax reform rapporteur in the Chamber, deputy Aguinaldo Ribeiro (PP-PB).

Regarding the municipalities, the minister explained that they will be represented on the council based on the size of the population.

In recent days, the governors of the South and Southeast demanded changes in the Federative Council. This is because these regions, based on the number of states, would lose the votes, despite having most of the country’s population, while the North, Northeast and Midwest would win because they concentrate 20 of the 27 units of the Federation.

São Paulo

The minister also commented on the meeting he had earlier with the governor of São Paulo, Tarcísio de Freitas. According to Haddad, during the meeting, the governor showed that he is more “sensitive” to the argument that changes in the negotiations surrounding the tax reform will result in liabilities for future rulers.

“If we change something now, such as postponing some measures, this bill will be paid in four years. It would be easy for me to agree (with eventual changes) and leave the effects for when I am no longer here in the ministry, but I don’t think so, ”he declared.

After this Wednesday’s meeting, Freitas withdrew from some of the criticisms he had been making of the tax reform and said be in favor of “95% of what is being discussed”. Freitas also said he had disagreements on “specific issues” with the federal government, but claimed to be a “partner” in approving the reform.