Earlier this week the president Jair Bolsonaro (no party) vetoed the excerpt from Provisional Measure 1018/2020 which guaranteed the exemption from the tax contribution of the streaming platforms.

In the passage in question, it was reported that the services would not pay the Contribution for the National Development of the Film Industry (Condecine), popularly known as the “audiovisual contribution”.

President Jair Bolsonaro vetoes tax exemption for streaming platforms.
Image: Marcelo Camargo / Agência Brasil

The main purpose of the MP is to reduce the tax burden of the service of broadband Internet via satellite provided through small antennas. However, with Bolsonaro's one-off veto, services such as Netflix, Disney+, HBO Max and Prime Video will have to pay industry-wide tax, including open and closed televisions.

The president's decision was based on a recommendation from the Ministry of Economy, who pointed out that failure to charge would result in a loss of revenue of billions. In addition, the General Secretariat of the Presidency of the Republic stated that the fiscal waiver disobeys both the Fiscal Responsibility Law and the Budget Guidelines Law.

The Provisional Measure initially sent by the federal government it did not contain the excerpt that was vetoed by Jair Bolsonaro, it was added during the course of the bill in the Chamber. However, the president's decision is not final and may be overturned by the National Congress.

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For the feat to happen, it will be necessary for there to be a rejection by an absolute majority both in the Chamber of Deputies and in the Federal Senate, that is, 257 votes from deputies and 41 votes from senators.

Despite the controversy surrounding the tax contribution of streaming platforms, the MP approved has as its main focus equaling the taxes levied on the satellite broadband internet sector to the mobile telephony sector, an initiative that could take the internet to more remote and needy regions.

Street: Agency Brazil

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