The tax reform proposal discussed in the Senate could lead to the taxation of the Free Market and other sites that act as intermediaries between buyers and sellers. The objective, according to parliamentarians, is to tax sectors that today have tax immunity.
The tax for these companies is defended by the project’s rapporteur, Senator Roberto Rocha (PSDB-MA). “We want to make a digital proposal, a tax reform 5.0. To ensure that there is a greater number of people paying taxes and a much lower burden in Brazil ”, he said, in a public hearing of the Senate held on Monday (19).
On the same day, a PSDB Facebook page pointed out that the change would also apply to Amazon. Apparently, the text concerns the company’s marketplace, which works similarly to the Free Market.
“Today, the largest retailer in Brazil is Mercado Livre, which does not pay a cent of tax. So, we need to bring the technology to present a text that looks more forward than backwards, ”said Rocha, in a session of the Senate’s Constitution and Justice Commission (CCJ) on August 14.
Senators analyze the Proposed Amendment to the Constitution (PEC) 110/2019, based on the proposal by former federal deputy Luiz Carlos Hauly and presented under collective authorship. The text extinguishes nine taxes (seven federal, one state and one municipal).
On the other hand, the State Tax on Operations with Goods and Services (IBS) would be created, and the Selective Tax, which would target specific segments and be federal.
Tax reform of the Chamber
It is worth remembering that the Chamber of Deputies is analyzing another tax reform project with PEC 45/2019. It proposes the extinction of five taxes for the creation of the IBS. If approved, the tariff could increase taxes on companies like Netflix and Uber.
Parliamentarians intend to increase rates aimed at foreign companies that provide services over the internet, the so-called OTTs (over the top).
“These are companies that earn good service revenue and do not leave anything here for Brazil, they just take this money from the effort of each one of us and take it away to other countries”, said, in July, the president of the Special Commission of Tax Reform, deputy Hildo Rocha (MDB-MA).