Movie directors were relieved to hear about passage of Law 161/89, originally drafted by ex-president Fernando Henrique Cardoso when he was a senator. The rapporteur for the bill was Sen. Romero Jucá (PMDB, Roraima). It won?t come into force until it?s signed by President Luiz Inácio Lula da Silva.
A rider passed by 69 senators to 1 exempts certain movie-related activities from municipal service tax (ISS) to avoid cascading taxation. The first draft of the bill extended the list of services subject to ISS. If passed without the rider, the bill would have made all stages of the value chain subject to ISS tax at around 5%, from production to exhibition.
Ancine, the national film agency, participated in the negotiations, alongside the Cinema Subcommittee subordinated to the Senate Education Committee. Sen. Saturnino Braga (PT, Rio de Janeiro) was one of the lead negotiators.