The Commission of Constitution and Justice of Brazil’s House of Representatives on August 15 approved by a 44-15 vote the constitutionality of seven constitutional amendment projects, all dealing with the 0.38% bank transactions tax (CPMF). The most important project approved extends CPMF until 2011 with the same 0.38% rate. Other projects approved by the commission provide for a gradual reduction of the CPMF rate and also the sharing of CPMF tax revenues with states and municipalities. The projects now follow to a special House commission, formed by 17 lawmakers, that has 40 sessions to debate and vote on the projects. The executive branch rejects any proposal that reduces the rate or shares CPMF revenues with states and municipalities. In 2006, CPMF generated BRL 32.5 billion in tax revenues.
16Aug 2007