Provisional measure extending Reporto should come out by October, says Federal Government

A provisional measure (MP) to extend the Tax Regime to Incentivize the Modernization and Expansion of the Port Structure (Reporto) should be prepared by October, according to the Brazilian Ministry of Ports and Airports. The validity of the tax benefit for importing equipment and infrastructure investments in Brazilian ports ends on December 31st.

In a note, the Ministry of Ports reported that “it is in favor of renewing the Reporto, which was a very useful instrument in the modernization of Brazilian ports. Minister Márcio França was even the rapporteur for the first extension of the law, in 2008, when he was a federal deputy. The MP is expected to be prepared by October”.

The folder also informed that “it maintains dialogues on the subject with the Ministry of Finance, which reinforces the importance of Reporto for Brazilian ports in the acquisition of equipment that is not produced in Brazil.” He also highlighted “the role of the Federal Government as an agent that induces the development of the port sector, which grew 4.4% in the first five months of the year and reached a total volume of 495.8 million tons of cargo handled by Brazilian ports, compared to 2022”.

The creation of the MP meets the desire of the private sector, especially the port and industrial sectors. “We were with the national secretary of Ports and Waterway Transport, Fabrizio Pierdomenico, at the Ministry of Ports and Airports, which gathers subsidies to prepare the provisional measure. And the MP also has the support of the Ministries of Transport and Finance”, said the president of the Brazilian Association of Port Terminals (ABTP), Jesualdo Silva.

Tax reform

In addition to the MP, entities from the port and industrial sectors articulate the inclusion of Reporto in the transition period of the tax reform, scheduled until 2033, for the unification of federal, state and municipal taxes. The reform is the subject of the Proposed Amendment to the Constitution (PEC) 45/2019.

“Our expectation is to define an agenda with the tax reform rapporteur, Senator Eduardo Braga (MDB-AM), next week. The changes will occur gradually, so we expect a measure that guarantees Reporto at least until 2027 until the renovation is completed”, said Jesualdo.

The executive director of the Brazilian Association of Terminals and Customs Enclosures (Abtra), Angelino Caputo, said that the organization has participated in all articulations in order to preserve the Reporto. According to him, the regime is essential for the port and railway sectors to reduce the “Brazil Cost” and for infrastructure not to be a burden on the cost of logistics.

“If we have to pass on the cost of acquiring machinery to the cost of the service provided, this will affect the Brazilian product that is exported. So, we are talking to all the ministries involved, with the Ministry of Ports and Airports as a partner” .

Joints

According to Caputo, a group of entities from the port and railway sectors are resorting to the Federal Government, the National Congress and even the Federal Revenue to guarantee the effectiveness of the Reporto.

“We have also articulated with the Federal Revenue and we have already spoken with the extraordinary secretary of the tax reform of the Ministry of Finance, Bernard Appy, so that it becomes a permanent benefit. He is sympathetic to the concept of not burdening investments, but this is not contemplated, it will only become permanent when the reform is in operation, after 2027. Until then, the ideal thing is for it to enter the transitional rule of the reform that is approved in Congress”.

Caputo said the entities have the support of the Mixed Logistics Parliamentary Front (Frenlogi), the Brasil Logística Institute (IBL) and part of the National Congress. “In the Senate, we are going to do some work to try to contemplate, in the transition rule of PEC 45/2019, the permanence of the Reporto until the reform is implemented”.

He will also activate the National Transport Confederation (CNT). Last week, he spoke about Reporto with the vice president and Minister of Development, Industry, Commerce and Services, Geraldo Alckmin (PSB), “who offered to discuss (the topic) within the scope of the Executive Branch.”

Understand

PEC 45/2019, on tax reform, was approved in the Chamber of Deputies and entered the Senate last Thursday. First, the piece will be sent to the Constitution and Justice Commission (CCJ) for consideration and approval. It will then go to the plenary for a vote. The expectation is that the reform will be completed in 2023, according to Senate President Rodrigo Pacheco (PSD-MG).

Source: A Tribuna

To read the full original text, visit: www.atribuna.com.br/noticias/portomar/medida-provisoria-que-prorroga-reporto-deve-sair-ate-outubro-diz-governo-federal

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