Agenda of the week: tax reform and Lula’s international visit to Argentina

The upcoming week in Brazilian politics will be busy with significant votes in Congress, particularly in the Chamber of Deputies.

President Luiz Inácio Lula da Silva has three priority projects on the agenda: reinstating the “casting vote” in the Tax Appeals Administration Council (Carf), implementing a new fiscal rule, and pushing for tax reform.

The Chamber’s president, Arthur Lira, has scheduled the review of these three texts to begin on Monday.

The Carf’s bill is of utmost importance and needs to be voted on first. The casting vote in the Carf is a contentious issue, raising concerns among liberal lawmakers and businesspeople.

They argue that tie votes should be pro-defendant rather than giving the government an advantage.

Regarding the fiscal framework, the Senate’s amendments to the approved text are yet to be voted on.

Notably, these changes removed important funds for education, the Federal District, and science, technology, and innovation.

The outcome of the House vote will be sent for presidential approval.

Debates on tax reform are also expected to continue, with negotiations between governors and the government for a compensation fund.

Governors are seeking R$75 (US$15) billion, while the government is offering R$40 billion.

In other news, Gabriel Galípolo, former executive secretary of the Ministry of Finance, will face a Senate test on Tuesday for his appointment as a director of the Central Bank.

His confirmation is not expected to face much resistance.

President Lula’s week begins with a visit to the Oeste-Leste integration railroad in Ilheus, Bahia, followed by addressing wage inequality between men and women in Brasília.

He then travels to Argentina for the Mercosur Summit and visits the Itaipu power plant on the Paraguay border before returning to the capital.

There may be a leadership change in the Ministry of Tourism, with concerns over delays in the handover.

Allegations have emerged regarding negotiations for positions and amendments, but the mayor of Belford Roxo denies these claims and aims to maintain a relationship with the president while representing the evangelical community.

Economically, the Ministry of Development, Industry, Commerce, and Services will release trade balance data for the week, with projections suggesting a surplus of at least US$9.5 billion.

June’s figures have the potential to break previous records, indicating a possible historic outcome.

For the full picture, see our Brazil Tax Reform: Complete Guide.

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