Indicated by Lula, Bernard Appy says he is confident in approving tax reform in 2023

Appointed to occupy the position of special secretary for tax reform from 2023, economist Bernard Appy said this Wednesday (12) that he is confident in the approval of a new consumption taxation system next year.

Appy participated in the seminar “Challenges of the Tax on Goods and Services (IBS): international VAT experience”, organized by the CCiF (Centro de Cidadania Fiscal), an entity in which he has been a director for seven years.

The IBS, also known as IVA, is the tax that would be created to unify five taxes on consumption (PIS, Cofins, IPI, ICMS and ISS). There are several proposals in this regard in Congress, one of them based on CCIF studies, the PEC (Proposed Amendment to the Constitution) 45/2019.

“It is not easy, but I am quite confident that we will be successful in finally getting a good reform of consumption taxation approved in Brazil in 2023″, said Appy, recalling that this is an agenda that comes from the Constituent Assembly in 1988. process, after 35 years, I believe it will be completed next year.”

Appy stated that taxes that follow the VAT (value added tax) model are used in most countries and that there is no relevant economy in the world thinking of replacing it. “VAT is being improved, but nobody is abandoning it.”

In his last public event for the CCiF, Appy stressed that Congress will have the last word and that all the discussions held in recent years by Parliament, in particular the debates on the proposals of the Chamber (PEC 45) and the Senate (PEC 110), will be important to the success of the reform.

Federal deputy Aguinaldo Ribeiro (PP-PB), rapporteur for PEC 45, who also participated in the event, said that Appy’s nomination is an important signal given by president-elect Luiz Inácio Lula da Silva (PT) and by the future Minister of Finance , Fernando Haddad, in support of the reform.

“In Parliament and in the government, there will now be a synergy so that there is actually a tax reform. The signal from President Lula and Minister Haddad was very important. With this signal from the Executive, I have no doubt that this reform will take place in the first year of government”, said Aguinaldo, who recalled the current government’s resistance to a broad tax reform.

The deputy reported seeing the support of several members of the Legislative and Judiciary for the proposal. “Appy’s new mission is not easy, but he will count on all those who want a new tax system. The main agenda for 2023 is tax reform.”