The IBFD has received the draft reform plan of 17 September 1997, whose objectives are simplicity and generality. The plan reflects the technical approach of the Ministry of Finance and aims to reform the tax system, which is complex and obsolete, jeopardizes competitiveness and does not permit harmonization with other Mercosur member countries.
Highlights of the draft are:
- redistribution of public tasks among the different levels of government, but each level will maintain its current revenues;
- implementation of federal VAT and state excise and retail sales taxes;
- abolition of the federal excise tax (IPI), the states' ICMS and ISS, the federal social contribution (CS) and several social security charges (CONFINS and PIS/PASEP); and
