Brazil’s gov’t decides to extend ‘Reporto’ tax benefit through bill

With 90 days left before the expiration of Reporto, a tax regime aimed at modernizing and expanding port infrastructure in the country, the Brazilian Federal Government has chosen to make the executive order that would have extended the text into a bill. The fiscal benefit of importing equipment and investing in infrastructure at Brazilian ports will end on December 31.

In August, the Ministry of Ports and Airports, then under the management of Márcio França, indicated that the executive order would be drafted by October, and the ministry was in discussions with the Ministry of Finances to adjust the content. With Silvio Costa Filho taking over the governmental body, the extension of Reporto will unfold as a bill.

The Ministry of Ports and Airports stated, “In discussions with the Chief of Staff, it was agreed that the provisional measure would be converted into a bill. Once done, it was submitted to the Chief of Staff, who, after analysis, requested input from the Ministry of Finances and the Ministry of Transport through the National Railway Transportation Secretariat (SNTF), whose sector benefits significantly from Reporto, as does the port sector.”

“The topic is currently being discussed with the SNTF and the Ministry of Transport,” the ministry continued. “It will then be submitted to the Ministry of Finance, which is also aware of the situation.” According to the ports department, “the then provisional measure will proceed as a bill because the future Minister of Ports and Airports has already signaled the importance of continuing this topic as public policy.”

Meanwhile, in the Chamber of Deputies, Bill No. 4,885/2016, which deals with Reporto, has a new rapporteur in the Finance and Taxation Commission: Paulo Alexandre. He promised to expedite the unfolding of the matter.

“We must resolve this issue as soon as possible and provide predictability to a segment of the economy, as it is difficult to establish an investment plan that will generate jobs and income without a certain level of predictability.” We’re talking about 90 days with no idea what will happen then. “This is very bad for the country and the economy,” the legislator underlined.

Tax reform

Furthermore, entities in the port and industrial sectors are working to include Reporto in the transition period of the tax reform, which is scheduled to run until 2033, aiming to unify federal, state, and municipal taxes. The reform is the subject of Constitutional Amendment Proposal (PEC) 45/2019.

In August, the president of the Brazilian Association of Port Terminals (ABTP), Jesualdo Silva, mentioned that he would discuss securing the issue with the reform’s rapporteur in the Senate, Eduardo Braga. “Changes will occur gradually, so we hope for a measure that guarantees Reporto at least until 2027 until the reform is completed.”

At that time, the executive director of the Brazilian Association of Terminals and Customs Warehouses (Abtra), Angelino Caputo, stated that the entity had been involved in efforts to preserve Reporto. According to him, the regime is crucial for the port and railway sectors to reduce the logistics costs, and infrastructure does not become a burden on logistics costs. “If we have to pass on the cost of machinery acquisition to the cost of the service provided, it will impact the Brazilian product being exported.”

Source: A Tribuna

To read the original news report, see: https://www.atribuna.com.br/noticias/portomar/governo-federal-decide-prorrogar-beneficios-do-reporto-por-meio-de-projeto-de-lei

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