Tax reform working group in Brazil’s House of Representatives commences work

On March 1, 2023, the Brazilian House of Representatives Working Group on Tax Reform (WG) held its first public meeting to organize its work schedule for 2023 and determine the guidelines the House will seek to implement.

When it was created on February 15, the working group was given 90 days (extendable for an equal period) to discuss and approve the text of a proposed constitutional amendment (PEC) on the question of tax reform. As announced on March 1, this text will be based on work conducted by the Special Committee on PECs No. 45/2019 and No. 110/2019.

Federal Representative Reginaldo Lopes (Workers’ Party – PT) will serve as the group’s coordinator, while Federal Representative Aguinaldo Ribeiro (Progressistas – PP) will act as its rapporteur. The working group has committed to presenting its final report on May 16, 2023. According to comments made during the meeting, the WG should also count on unconditional support from the President of the House, Arthur Lira (Progressistas), Senator Rodrigo Pacheco (Social Democratic Party – PSD) and Brazil’s executive branch.

The schedule released for the WG is outlined below (without prejudice to other speakers who may feature in the debates):

• March 6-10 – Presentation of PEC No. 45/2019 and PEC No. 110/2019. Speakers: Representative Aguinaldo Ribeiro (Rapporteur for PEC No. 45/2019), former senator Roberto Rocha (Rapporteur for PEC No. 110/2019), and Bernard Appy (Special Secretary for Tax Reform);
• March 13-17 – Diagnosis of Brazil’s current tax system;
• March 20-24 – International best practices regarding consumption taxes;
• March 27-31 – Tax reform from a federative perspective;
• April 3-6 – Tax reform from a sectorial perspective;
• April 10-14 – Tax reform from a distribution perspective;
• April 17-20 – Tax reform from a digital economy and green economy perspective;
• April 24-28 – Tax reform from a tax administration perspective;
• May 1-5 – the WG’s official mission to the Organization for Economic Cooperation and Development (OECD);
• May 8-12 – Final seminar
• May 16 – Submission of final report and conclusion of the WG.

During the meeting the WG held on March 1, Rapporteur Aguinaldo Ribeiro suggested holding regular meetings on Tuesdays and Wednesdays at 2:30 pm (Brasilia time) to create a weekly program that would be released as the WG’s activities progress. He also informed the group members that others may participate in the WG’s events over the next months.

The WG’s committee can present any potential measures or parliamentary amendments while the group’s work progress, although there are no specific deadlines (provided they are submitted is before the final report is presented). The WG also intends to hear from government entities and civil society groups – especially entities representing Brazil’s productive sector – to improve the text before presenting the final report.

For further information on this subject, please contact Mattos Filho’s Tax and Government Relations practice areas.