Nalio assesses the meeting with Haddad: ‘Our character to judge the transformation is affordable’ | The economy

After a meeting with Minister Fernando Haddad, the municipalities of the Municipalities of Para (Sharp), Nalio Aguar, spoke to a liberal group about the effects of reform and major concerns on the municipalities of the state. The approved tax reform has proposed a structural change in the utility tax system in Brazil.

https://www.youtube.com/watch?v=8MCQMGPJ3S4

Based on taxes such as current tax sample, ICMs (State) and Issi (Municipal), dual additional value must be replaced by tax (VAT). The VAT is divided into two taxes: cooperation on goods and services (CBS), federal capacity, and tax (IBS) on goods and services, which replaces ICMs and ISS and jointly managed by states and municipalities. This proposal will simplify the procurement, reduce the economic war between the states and improve the economic assessment, but raise questions about the distribution of resources in federal institutions.

In the interview, Neu said, “We are dealing with the Ministry of Finance, Minister Haddad and the new tax replacing ICMs and Ish. The management of this collection will be shared with the equity between states and municipalities.”

According to him, it is essential to form this committee to ensure that municipalities have voices in the process. “There are 27 delegates of the state and 27 representatives of the municipalities. The election is being held for this election, and we are mobilizing mayors to actively participate in the process,” he said.

One of the main factors covered is the effect of resources re -IST distribution and mining municipalities. “With the extinction of the ICMs, the formation of transfers is changed. Currently, some municipalities such as Kanas Dose Carazos and Paravapebas are favorable to the ICMS law, accepting a large part of the collection. With the move to the IBS, six to seven municipalities cause para losses.”

However, he emphasized that the reform provides compensation mechanisms to prevent damage. “This compensation fund has already been provided by the law. If any municipality falls into revenues, it will be a compliance to balance accounts. This is an important condition for the approval of the Congress reform,” he said.

His challenge is to train municipal administrators to address the new tax regulations. “In Parara, about 70 to 100 mayors are in their first position. Most people still have an important role in providing reform and training, so that these administrators can adapt and make sure that their municipalities are ready.” He pointed out that CNM and strange training would intensify so that the mayors were clear on the changes and how to build their administrations in the new tax model. “If we do not have a well -planned transformation, we can see the municipalities with serious difficulties to maintain the necessary services,” he warned.

In addition to the tax reform, Nelio also expressed concern over the impact of income tax reforms on municipalities. “If this is accepted, the current proposal may lose up to $ 440 million per municipalities of para, which will affect both the municipal Participation Fund (FPM) and the proper collection of municipalities,” he warned. Income tax collection reduction seriously compromises municipal budgets, which seriously affecting social programs and infrastructure investment. “What we want is that the Federal government will find a balance without harming the municipalities, which already faces financial difficulties,” he said.

Finally, he emphasized the interests of the municipalities that they do not protect the strange political parties. “Municipalities can ensure that the population can provide good services to the population. Tax reform represents a significant change, and it is our role to ensure that municipalities are ready for this transition.”

He argued that the issue was confirming the necessary adjustments in the implementation process. “It is not enough to accept the version. Its implementation should be very simple and balanced to all municipalities,” he said.