Governor Tarcísio Gomes de Freitas of São Paulo is initiating a mobilization effort with state and federal deputies to postpone the vote on tax reform in the House of Representatives.
The vote may occur as early as next week, depending on the federal government’s base.
Governor Tarcísio met with São Paulo caucus coordinator, federal deputy Antônio Carlos Rodrigues, Legislative Assembly of São Paulo (Alesp) president André do Prado, and São Paulo Mayor Ricardo Nunes to discuss the matter.
The meeting also included business representatives and service sector entities, who are critical of the reform’s text and advocate for a postponement of the vote.
The governor aims to form a pressure bloc against the Chamber’s president, Arthur Lira, and the reform’s rapporteur, Aguinaldo Ribeiro, to delay the consideration of the text and allow for more extensive discussions on the proposal.
The São Paulo government opposes the establishment of the Federative Council, a collegiate body that would manage the proposed Tax on Goods and Services (IBS), intended to replace the ICMS (state tax) and the ISS (municipal tax).
The state government is concerned about the potential loss of autonomy in resource management with implementing the IBS.
Other states, such as Rio de Janeiro, also oppose the Federative Council.
Mayor Ricardo Nunes is also against the current text of the reform, warning that it could result in an annual revenue loss of R$15 (US$3) billion for the municipality.
Governor Tarcísio presented a “worrisome” scenario regarding the current tax reform text. According to Alesp president André do Prado, the governor expressed concerns about potential revenue losses for the state and the city of São Paulo.
Tarcísio called for a meeting with São Paulo’s congressional representatives to discuss the reform further.
House President Arthur Lira will also meet with House leaders on Sunday to determine the agenda for votes on the economic agenda, aiming to bring the tax reform to the plenary for consideration next week.