Brasília, 7/24/2003 (Agência Brasil - ABr) - Yesterday a new text of the tax reform bill was presented to the Chamber of Deputies Special Commission which will now examine it. The text was drawn up by deputy Virgílio Guimarães(PT-MG), who is the bill's redactor (relator).

This is the third version of the bill and, according to Guimarães, some items are still not in the bill because they depend on negotiations (such as the financial transaction tax - CPMF, and consumer defense council -Cide). The text is available on the internet where suggestions can be made and it can be analyzed and discussed.

Guimarães reports that the original government bill received 466 amendments, which were duly examined. He says the present text is another step in reaching a consensus on a definitive text. He declared that the final text should not cause surprises or controversy, but reflect the opinion of the commission. The deputy said he was travelling around the country for discussions with local inhabitants on the effects of the bill and that he was working as a partner with state governors.

The final text will be presented when it is ready. "We have decided that fiscal balance is necessary for the country and the economy. We will obtain fiscal balance," Guimarães declared.

According to deputy Delfim Netto (PP-SP) [a former minister of Finance], the text is not what a lot of people have been expecting. It does not create new revenue and expands the participation of states and municipals and the government. That, says the deputy, shows that the objective of the bill is basically to lay the groundwork for economic development and eliminate the distortions that characterize the present Brazilian tributary system. According to Delfim Netto, there are two fundamental points in the bill: the elimination of all taxes on investments and the reduction of taxes on exports. He concluded by saying that the result of the bill would be renewed growth. (AB)