Motta admits that MP 1.303 can be dehydrated and provides difficult discussion

The president of the Chamber of Deputies, Hugo Motta (Republicans-PB), acknowledged that the provisional measure 1.303/25, which reformulates the taxation of investments and replaces the discharge of IOF, may be dehydrated during the process in Congress. The MP loses validity on Wednesday (8) and still awaits a vote on the mixed committee.

In an interview with Economic value Published on Monday (6), Motta stated that the proposal “is very comprehensive” and that the rapporteur, Carlos Zarattini (PT-SP), “has made an effort to make the approval of the report”, but admitted that the text should undergo adjustments.

“The MP is very comprehensive; it deals with changes in many sectors, which ends up making the debate a little difficult. Zarattini has been talking to these sectors, with the benches, and has made an effort to make the report approval viable,” said Motta.

According to him, the government and the congress seek a possible consensus:

“Sometimes the great is the enemy of the good, and the best text is the one that is possible to approve. That’s what Zarattini is looking for.”

Decisive MP for the Budget

MP 1.303/25 is considered essential by the Ministry of Finance to ensure about $ 20 billion in revenues and meet the surplus goal of 0.25% of GDP this year.

Published in June by the government, it foresees the unification of the Investment Income Tax rate at 17.5% and alters the taxation of exempt assets such as LCI, LCA, CRI, CRA and Encouraged Debentures, a theme that generated strong reaction in the financial market and between agro and construction benches.

The Joint Commission analyzing the MP even delayed the vote on Zarattini’s opinion last week and scored a new session for Thursday (2), but there was no consensus. The government is now trying to build last -minute agreement with resistant benches to taxation of exempt investments such as LCIs and LCAs to avoid the expiration of the proposal.

If not voted until Wednesday (8), the expiration measure, and the government loses one of the main sources of fiscal compensation after the correction of the IR table.

“We have to wait to have a sense of what, in fact, will be approved in the commission and, consequently, in the plenary of the houses,” said Motta.

Administrative Reform enters the agenda after IF and MP of the IOF

In addition to the discussion of the MP, Motta stated that the administrative reform will be the next priority of the House, after the approval of the income tax reform.

“Another agenda that will have of us also total priority is administrative reform,” said the deputy.

He pointed out that the debate on the theme “is still starting” and that there is no estimates on the fiscal impact of changes.

“You can’t be priced yet what will save yourself, what will be cut. There is also no interest from Congress in making fiscal adjustment with administrative reform.”