André do Prado (PL) defends a review of the Tax Reform after the elections The candidate for the Senate for São Paulo, André do Prado (PL), defended this Monday (27) a review of the Tax Reform after the elections. During a visit to Ribeirão Preto (SP), he said that the topic had not been widely debated with sectors such as agribusiness and cast doubt on the impacts that the changes could cause, especially on municipalities. "No one knows what will happen with the tax reform. Municipalities have no idea whether they will lose revenue, whether they will not lose revenue," he said. ?Click here to follow the g1 Ribeirão e Franca channel on WhatsApp The tax reform was approved by Congress at the end of 2023 and had different regulations approved until 2025. Among the main changes planned are the replacement of the main taxes on consumption by two, in addition to putting an end to the accumulation of taxes throughout the production chain. For municipalities, one of the main changes is the end of the Service Tax (ISS), today an important component of local budgets, with the new Goods and Services Tax (IBS), which will be part of the dual Value Added Tax (VAT). Furthermore, it established that micro and small companies, from 2027 onwards, can choose a new taxation regime, if it is more advantageous. This year, considered a testing period for the reform, companies need to start preparing systems for issuing electronic invoices to include the new taxes, which will be gradually incorporated until 2033. For André do Prado, neither the state nor the municipalities are currently able to know the extent of these changes, which could particularly harm cities with more limited finances. "The state of São Paulo has to know what losses the state will incur, whether it will benefit or harm small, medium-sized municipalities, especially those that do not currently have the resources to make investments. Practically the money is just to cover the public sector. They are already without any investment conditions, imagine if they lose even more revenue", he warned. See more news from the region on g1 Ribeirão Preto e Franca