In an interview with BNamericas, Paulo Honório discussed the implications of the approval of PLP 68 in the Federal Senate – and now also in the Chamber of Deputies, having been sent for presidential sanction.
The article addresses general aspects regarding the rate of Brazil’s dual VAT and, in particular, the Selective Tax on the export of minerals, oil, and natural gas.
The initial proposal from the Chamber provided that the taxable event would not occur during extraction, but instead during commercialization, non-onerous transfers, exportation, or consumption of the good by the extractor or manufacturer, with taxation based on the value of the transferred, sold, or consumed product. The Senate corrected this critical point, establishing that the taxable event occurs at the moment of extraction, which has logical consequences for the tax base: the value of the raw extracted product.
However, there are still points to be addressed: the possibility of the tax being levied on extracted products destined for export. The Senate and the Chamber have taken an important step, but further progress will be needed.
