New CPMF tax is overturned in House committee.
The proposal was included in the report by Congressman Rogério Carvalho (PT-SE); the text suggested the creation of the Social Contribution for Health (CSS), a tax on all financial transactions above R$ 4; the revenue would be allocated to health, at a rate of 0,2% per transaction, similar to the Provisional Contribution on Financial Transactions (CPMF), which was abolished in 2007; the creation of the tax caused much discussion and was rejected by the majority of parliamentarians.
Chamber Agency - The special committee of the Chamber of Deputies that analyzes the financing of the Brazilian health system rejected on Tuesday afternoon (12) the report by deputy Rogério Carvalho (PT-SE). The text suggested the creation of the Social Contribution for Health (CSS), a tax on all financial transactions above R$ 4 thousand. The revenue would be allocated to health, at a rate of 0,2% per transaction, similar to the Provisional Contribution on Financial Transactions (CPMF), which was abolished in 2007.
The creation of the tax caused much discussion and was rejected by the majority of parliamentarians. After the rejection, Deputy Geraldo Resende (PMDB-MS), who had presented a separate vote, was appointed as rapporteur and his report was approved. Resende's proposal excludes proposals to create new taxes for public health.
Resende said that Carvalho did a great job, but that a report pointing to the re-creation of taxes would not be approved. "Today, almost all Brazilians are repulsed by the creation of new taxes. We have the fifth highest tax burden in the world, and recreating the CPMF under a new name would only contaminate the proposal and cause it to become dormant," he said.
The separate vote that was approved, in addition to excluding the CSS (Social Security Contribution), also declared that the federal government will allocate 15% of the Union's net current revenue to the sector in 2014, increasing to 18,7% in 2018, with a review scheduled for 2019.
Also incorporated into the report was a proposal by Congressman Paulo Rubem Santiago (PDT-PE) to exclude resources allocated to Social Security from the Union Revenue Sharing Mechanism (DRU), which, according to Resende, will bring a substantial influx of resources to the health sector.
Report changed.
Representative Rogério Carvalho even included in his final report parts of the separate vote by Representative Geraldo Resende, presented at a meeting on the 30th. He increased the amount to be allocated to the Unified Health System (SUS) in 2018 to 18,7% of the Union's net current revenue (RCL). In his previous text, Carvalho proposed that the percentage reach 15% in 2017.
The rapporteur backtracked on the proposal to create the CSS, however, he included in the report that the committee recommend support for Complementary Bill 32/11, by Congressman Amauri Teixeira (PT-BA), which also creates the contribution, with a percentage of 0,18% per transaction. For Carvalho, the 18,7% of the RCL is insufficient to finance healthcare.
In light of the above, Representative Eleuses Paiva (PSD-SP) expressed his disagreement and said that any possibility of creating new taxes for society should be removed. "When the population took to the streets to demand more funds for healthcare, they didn't ask for new taxes to have quality healthcare. We are here voting on prioritizing federal government funding to have more investments in this area," he declared.
Support for other taxes
With the majority of parliamentarians expressing opposition, Carvalho withdrew his support for the bill that creates the CSS. However, other bills that he requested be recommended were maintained in the report by the deputy. Among them, Senate Bill (PLS) 707/07, which increases the rate of the Social Contribution on Net Profit (CSLL) of financial institutions from 15% to 18%; and Complementary Bill 48/11, by former deputy Dr. Aluizio (RJ), which creates the Social Contribution on Large Fortunes (CSGF).
Even so, the proposal was not accepted. “I agreed to withdraw the CSS, but the other two contributions would remain because we need to show society that more resources are needed for healthcare. Unfortunately, part of the caucus is only committed to capital, to economic interests, and uses the discourse of healthcare to say they are in favor, but in practice they are defending the interests of banks and the wealthy here in the House,” declared Carvalho.
Congresswoman Jandira Feghali (PCdoB-RJ) expressed support for Carvalho's report and stated that she found it "shocking and regrettable that, in the Brazilian Parliament, people who fight for the health of the people do not want to tax large fortunes and banks."