Tax Reform: created the pre-IBS Management Committee

Another important step towards the regulation of Tax Reform: the creation of a pre-management committee for the new Tax on Goods and Services (IBS). A technical cooperation agreement was signed between representatives of the National Front of Mayors and Mayors (FNP), the National Committee of Finance Secretaries (Comsefaz) and the National Confederation of Municipalities (CNM) this week, in Brasília.

The pre-IBS Management Committee anticipates the governance of the definitive Committee, which provides for an administrative structure composed of representatives from states and municipalities that must guarantee the efficiency of the new tax. In this pre-operational stage, which will take place before the tax comes into force, there must be shared decisions and transparency in the discussion stages in the National Congress.

Other points foreseen in the agreement include planning how the work of the Steering Committee, technology systems and also the administration of tax management will work.

Autonomy of entities

One of the main points raised by the members of the pre-committee is that the entities are able to maintain their autonomy, even in the face of a scenario that differs from what they supported, as explained by the vice-president of the FNP, mayor Dário Saadi.

“The National Front of Mayors took a stand against the Tax Reform, but since it was approved, it is important that we can guarantee autonomy and the maintenance and expansion of revenue for municipalities. This is essential so that Brazilian municipalities, especially medium and large ones, can continue to maintain their public policies and serve the population.”

Main points of the agreement

• Pre-operational governance: the IBS Management Committee works in collaboration between the parties (Union, states and municipalities) with transparency in decisions and processes;
• Objectives: joint preparation of regulations, exchange of information, development of operational solutions for IBS and legislative monitoring;
• Coordination structure: institution of coordination groups and technicians responsible for different aspects of IBS, such as general standards, operationalization and supervision;
• Obligations: the parties must follow the work plan, monitor results, designate representatives and maintain the confidentiality of shared information.