Brasília, 07/07/2003 (Agência Brasil-ABr) – The government feels certain that there will be votes on its tax and social security reform bills in the Chamber of Deputies this month, says the government leader there, Aldo Rebelo. Although there has been a high number of proposed modifications of the bills, both of which require changes in the constitution (Projeto de Emenda Constitucional) (PEC), the government sees the proposals as limited in scope. Government-allied parties have presented the largest number of amendments to the bills.

Rebelo reports that a total of 466 modifications were proposed for the tax bill, and 453 for the social security bill. "It is difficult to see how the government can avoid making some changes with so many amendments. But the essential spirit of the bills will be preserved," he said.

With regard to the tax reform bill, the so-called fiscal war between states got special attention [this consists of fiscal ploys to attract industry and business]. A large number of amendments dealt with taxes at the state level and how they should be levied.

Concerning the social security reform bill, there were seven proposals for major reconstruction - six of them from government congressmen. Many of the amendments dealt with retirement ages and benefits - taxing them, putting ceilings on them, reducing them or increasing them.

Rebelo says he does not see anything strange in the fact that the majority of the amendments came from government allies. The ten parties that support the government proposed 290 amendments to the tax bill. Opposition parties (PFL and PSDB) presented 165. Government allies proposed 266 amendments to the social security bill, the opposition 154. (AB)