Tax reform: regulation still does not bring equality between import and purchase of goods in the national market

These regimes are so named because they do not follow the general rule of applying taxes on the import or export of goods. They may be related to the storage, transportation, temporary stay and improvement of goods on national soil.

This is the case, for example, of drawback, a special customs improvement regime that reduces, suspends or exempts federal taxes on purchases of inputs by Brazilian companies that produce items for the international market. It is a way of reducing the burden on these companies’ production and making them more competitive abroad.

The problem with the text, according to the productive sector, especially industry, is that it does not treat imports and purchases made in the domestic market equally. While the PLP suspends the CBS and IBS levied on imports of inputs and raw materials, regardless of the special customs regime, the text does not guarantee the same treatment for purchases made in the domestic market.

This is what Armando Monteiro, president of the Thematic Council for Tax and Fiscal Affairs of the National Confederation of Industry (CNI), explains. “The thesis is this: for special customs regimes, whatever they may be, inputs and raw materials purchased on the domestic market must have the same benefit of tax suspension that is guaranteed to imported inputs and raw materials,” he points out.

The industry’s concern is that, if there is no suspension of taxes on purchases made in the domestic market, companies will prioritize imports, as these are subject to the suspension.

The leader of the party federation formed by PSOL and Rede in the Chamber of Deputies, federal deputy Erika Hilton (SP) believes that the lack of equality can cause competitive distortions. “It is a legitimate concern. This idea of ​​’oh, how come if I buy from abroad I don’t have to pay taxes, and if I buy here I do’, may end up generating this preference. This is a point to be observed”, she says.

two weights and two measures

The text provides for exemption from CBS and IBS on the import of goods under special customs regimes for transit, storage, temporary stay and even improvement.

But when it comes to purchasing goods on the national market, the project does not mention the possibility of tax relief for all types of goods.

The exceptions are the deposit regimes, in which the acquisition of inputs and raw materials, in the domestic market, by duty-free shops, will have their taxation suspended; and the oil and gas sector (Repetro), through which some operations will have equal tax treatment between imports and the domestic market.

As for improvement regimes, such as drawback, the text only makes the suspension of taxes optional for purchases of goods on the domestic market, while ensuring suspension for imports.

Processing

The PLP detailing how the new tax system will work has been sent to the Senate. If it is approved by the House without changes, it will be sent to the President for approval. However, if it is modified, it will be sent back to the Chamber of Deputies for analysis.

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