Article 145. The Union, the states, the Federal District and the municipalities may institute the following tributes:

1. taxes;
2. fees, by virtue of the exercise of police power or for the effective or potential use of specific and divisible public services, rendered to the taxpayer or made available to him
3. benefit charges, resulting from public works.

Paragraph 2 - Fees may not have the assessment basis reserved for taxes.

Article 146. A supplementary law shall:

1. provide for conflicts of competence concerning tax matters between the Union, the states, the Federal District and the municipalities:
2. regulate the constitutional limitations on the power to tax;
3. establish general rules concerning tax legislation, especially with regard to:
   1. the definition of tributes and their types, as well as, regarding the taxes specified in this Constitution, the definition of the respective taxable events, assessment bases and taxpayers:
   2. tax liability, assessment, credit, limitation and laches;,
   3. adequate tax treatment for the cooperative acts of cooperative associations.

Article 148. The Union may, by means of a supplementary law, institute compulsory loans:

1. to meet extraordinary expenses resulting from public calamity, foreign war or the imminence thereof;
2. in the case of public investment of an urgent nature and relevant national interest, observing the provisions of article 150, III, b.

Article 149. The Union shall have the exclusive competence to institute social contributions regarding intervention in the economic order and the interest of categories of employees or employers, as an instrument of its activity in the respective areas, observing the provisions of articles 146, III, and 150, I and III, and without prejudice to the provisions of article 195, paragraph 6, as regards the contributions mentioned in the latter article.

Sole paragraph - The states, the Federal District and the municipalities may institute a contribution payable by their employees to fund social security and assistance systems for the benefit of the latter.

Article 150. Without prejudice to any other guarantees ensured to the taxpayers, the Union, the states, the Federal District and the municipalities are forbidden to:

1. impose or increase a tribute without a law to establish it;
2. institute unequal treatment. ent for taxpayers who are in an equivalent situation, it being forbidden to establish any distinction by reason of professional occupation or function performed by them, independently of the juridical designation of their incomes, titles or rights;
3. collect tributes:
   1. for taxable events that occurred before the law which instituted or increased such tributes came into force;
   2. in the same fiscal year in which the law which instituted or increased such tributes was published;
4. use a tribute for the purpose of confiscation;
5. establish limitations on the circulation of persons or goods, by means of interstate or intermunicipal tributes, except for the collection of toll fees for the use of highways maintained by the Government;
6. institute taxes on:
   1. the property, income or services of one another;
   2. temples of any denomination;
   3. the property, income or services of political parties, including their foundations, of worker unions, of non-profit education and social assistance institutions, observing the requirements of the law;
   4. books, newspapers, periodicals and the paper intended for the printing thereof.

Paragraph 2 - The prohibition set forth in item VII a, extends to the autonomous government agencies and to the foundations instituted and maintained by the Government, as regards the property, income and services related to their essential purposes or resulting therefrom.

Paragraph 3 - The prohibitions set forth in item VI, a, and in the preceding paragraph do not apply to the property, income and services related to the exploitation of economic activities governed by the regulations which apply to private undertakings, or in which users pay consideration or prices or tariffs. nor exempt a promissory purchaser of real property from the obligation to pay tax thereon.

Paragraph 4 - The prohibitions set forth in item VI, subitems b and c encompass only the property, income and services related to the essential purposes of the entities mentioned therein.

Paragraph 5 - The law shall determine measures for consumers to be informed about taxes levied on goods and services.

Paragraph 6 - Any subsidy or exemption, reduction of assessment basis concession of presumed credit, amnesty or remission, related to taxes, fees or contributions, may only be granted by means of a specific federal, state or municipal law, which provides exclusively for the above-enumerated matters or the corresponding tax, fee or contribution, without prejudice to the provisions of article 155, paragraph 2, item XII, g.

Paragraph 7 - The law may impose upon the taxpayer the burden af the] payment of a tax or contribution. s hose taxable event X ill occur later, the immediate and preferential restitution of the amount paid being ensure;;? in case the presumed taxable event does nat occur

Article 151. It is forbidden for the Union:

1. to institute a tribute which is not uniform throughout the entire national territory or which implies a distinction or preference regarding a state, the Federal District or a municipality to the detriment of another, it being allowed to grant tax incentives for the purpose of promoting the balanced social and economic development of the various regions of the country;
2. to tax income from public debt bonds of the states, of the Federal District and of the municipalities, as well as the remuneration and earnings of the respective public agents, at levels above those established for its own bonds and agents;
3. to institute exemptions from tributes within the powers of the states, of the Federal District or of the municipalities.

Article 153. The Union shall have the power to institute taxes on:

1. importation of foreign products;
2. exportation to other countries of national or nationalized products;
3. income and earnings of any nature; I
4. industrialized products;
5. credit, foreign exchange and insurance transactions, or transactions relating to bonds or securities;
6. rural property;
7. large fortunes, under the terms of a supplementary law.

Paragraph 2 - The tax established in item III:

1. shall be based on the criteria of generality, universality and progressives, under the terms of the law:
2. shall not be levied, under the terms and within the limits established in law, on income deriving from retirement and pension paid by the social security system of the Union, of the states, of the Federal District and of the municipalities, to a person over sixty-five years of age, whose total income consists exclusively of work earnings.

1. shall be selective, based on the essentiality of the product;
2. shall be non-cumulative, and the tax due in each transaction shall be compensated by the amount charged in previous transactions
3. shall not be levied on industrialized products intended for export.

Paragraph 5 - Gold, when defined in law as a financial asset or an exchange instrument, is subject exclusively to the tax established in item V of the caption of the present article, due on the original transaction; the minimum rate shall be one per cent, and the transference of the amount collected is ensured under the following terms:

1. thirty per cent to the state, the Federal District or the territory, depending on the origin;
2. seventy per cent to the municipality of origin.

1. by means of a supplementary law, taxes not instituted in the preceding article, provided that they are non-cumulative and not founded on a taxable event or an assessment basis reserved for the taxes specified in this Constitution;
2. in the imminence or in the event of foreign war, extraordinary taxes, encompassed or not by its power to tax, which shall be gradually suppressed when the causes for their institution have ceased.

Article 155. The states and the Federal District shall have the competence to institute taxes on:

1. transfer by death and donation of any property or rights:
2. transactions relating to the circulation of goods and to the rendering of interstate and intermunicipal transportation services and services of communication, even when such transactions and renderings begin abroad;
3. ownership of automotive vehicles.

1. regarding real property and the respective rights, is within the competence of the state where the property is located, or of the Federal District;
2. regarding bonds, titles and credits, is within the competence of the Federal District or of the state where the probate or enrollment is processed, or where the donor is domiciled;
3. a supplementary law shall regulate the competence for the institution of such tax:
   1. if the donor is domiciled or residing abroad;
   2. if the deceased owned property, was resident or domiciled or had his probate processed abroad;
4. the Federal Senate shall establish the maximum rates for such tax.

1. it shall be non-cumulative, and the tax due in each transaction concerning the circulation of goods or rendering of services shall be compensated by the amount charged in the previous transactions by the same or by another state or by the Federal District;
2. exemption or non-levy, except as otherwise determined in the law
   1. shall not imply credit for compensation relative to the amount due in the subsequent transactions or renderings of services;
   2. shall cause the annulment of the credit for the previous transactions;
3. it may be selective, based on the essentiality of the goods or services;
4. a resolution of the Federal Senate, on the initiative of the President of the Republic or of one-third of the Senators, approved by the absolute majority of its members, shall establish the rates that apply to interstate and export transactions and rendering of services;
5. the Federal Senate may:
   1. establish minimum rates for domestic transactions, by means of a resolution on the initiative of one-third and approved by the absolute majority of its members;
   2. establish maximum rates for the same transactions to settle a specific conflict involving the interest of the states, by means of a resolution on the initiative of the absolute majority and approved by two-thirds of its members:
6. unless otherwise determined by the states and the Federal District, under the terms of the provisions of item XII, g, the domestic rates for transactions concerning the circulation of goods and the rendering of services may not be lower than those established for interstate transactions;
7. the following shall be adopted for transactions and rendering of goods and services to end-users located in another state
   1. the interstate rate, when it is incumbent upon the recipient to pay that tax
   2. the internal rate, when it is not incumbent upon the recipient to pay that tax;
8. in the case of subitem a of the preceding item, the tax corresponding to the difference between the internal and the interstate rate shall be attributed to the state where the recipient is located
9. it shall also be levied
   1. on the entry of goods imported from abroad, even in the case of goods intended for consumption or for the fixed assets of the establishment, as well as on services rendered abroad, and the tax shall be attributed to the state where the establishment receiving the goods or services is located;
   2. on the total value of the transaction, when goods are supplied with services not included in the power to tax of the municipalities
10. it shall not be levied
    1. on transactions transferring industrialized products abroad excluding semi-finished products as defined in a supplementary law
    2. on transactions transferring petroleum, including lubricants liquid and gaseous fuels derived therefrom, and electric energy to other states
    3. on gold, in the cases defined in article 153, paragraph 5
11. its assessment basis shall not include the amount of the tax on industrialized products when the transaction carried out bets ween taxpayers and concerning a product intended for industrialization or sale represents a taxable event for both taxes
12. A supplementary law shall
    1. define its taxpayers;
    2. provide for tax substitution;
    3. regulate the system of tax compensation
    4. establish, for purposes of collection of the tax and definition of the responsible establishment, the location of the transactions concerning the circulation of goods and the rendering of services;
    5. exclude from levy of the tax, in exports to other countries, services and other products other than those mentioned in item X, a;
    6. provide for the event of maintenance of a credit for services and goods remitted to another state and exported to other countries;
    7. regulate the manner in which, through deliberation by the states and the Federal District, tax exemptions, incentives and benefits shall be granted and revoked.

Article 156. The municipalities shall have the competence to institute taxes on:

1. urban buildings and urban land property;
2. inter vivos transfer, on any account, by onerous acts, of real property, by nature or physical accession, and of real rights to property, except for real security, as well as the assignment of rights to the purchase thereof;
3. services of any nature not included in article 155, II, as defined in a supplementary law.

Paragraph 2 - The tax set forth in item II:

1. shall not be levied on the transfer of goods or rights incorporated into the assets of a corporate body to pay up its capital, nor on the transfer of goods or rights resulting from the merger, incorporation, division or dissolution of corporate bodies, unless, in such cases, the predominant activity of the purchaser is the purchase and sale of such goods or rights, the lease of real property or leasing;
2. is within the competence of the municipality where the property is located.

1. establish its maximum rates;
2. exclude exportations of services to other countries from levy of the said tax.

Article 157. The following shall be assigned to the states and to the Federal District:

1. the proceeds from the collection of the federal tax on income and earnings of any nature, levied at source on income paid on any account by them, by their autonomous government entities and by the foundations they institute and maintain;
2. twenty per cent of the proceeds from the collection of the tax that the Union may institute in the exercise of the powers conferred on it by article 154, I.

1. the proceeds from the collection of the federal tax on income and earnings of any nature, levied at source on income paid on any account by them, by their autonomous government entities and by the foundations they institute and maintain;
2. fifty per cent of the proceeds from the collection of the federal tax on rural property, concerning real property located in the municipalities;
3. fifty per cent of the proceeds from the collection of the state tax on the ownership of automotive vehicles licensed in the municipalities;
4. twenty-five per cent of the proceeds from the collection of the state tax on transactions regarding the circulation of goods and on rendering of interstate and intermunicipal transportation services and services of communication.

1. at least three-fourths, in proportion to the value added in the transactions regarding the circulation of goods and the rendering of services carried out in the territory of the municipalities;
2. up to one-quarter, in accordance with the provisions of a state law or, in the case of the territories, of a federal law.

1. of the proceeds from the collection of taxes on income and earnings of any nature and on industrialized products, forty-seven per cent as follows:
   1. twenty-one and a half of one per cent to the Revenue Sharing Fund of the States and of the Federal District;
   2. twenty-two and a half of one per cent to the Revenue Sharing Fund of the Municipalities;
   3. three per cent, for application in programs to finance the productive sector of the North, Northeast and Centre-West Regions, through their regional financial institutions, in accordance with regional development plans, the semi-arid area of the Northeast being ensured of half of the funds intended for that Region, as provided by law;
2. of the proceeds from the collection of the tax on industrialized products, ten per cent to the states and to the Federal District, in proportion to the value of the respective exportations of industrialized products.

Paragraph 2 - No federated unit may be allocated a portion in excess of twenty per cent of the amount referred to in item II, and any excess shall be distributed among the other participants, maintaining, for the latter, the apportionment criterion established therein.

Paragraph 3 - The states shall remit twenty-five per cent of the funds they may receive as provided by item II to the respective municipalities, observing the criteria established in article 158, sole paragraph, I and II.

Article 160. It is forbidden to withhold or to make any restriction to the remittance and use of the funds assigned in this section to the states, to the Federal District and to the municipalities, including any tax additions and increases.

Sole paragraph - The prohibition mentioned in the present article does not prevent the Union and the states from remitting the funds on condition of payment of their credits, including those of the autonomous government agencies.

Article 161. A supplementary law shall:

1. define the added value for the purposes provided by article 158, sole paragraph, I;
2. establish rules for the remittance of the funds referred to in article 159, especially the criteria for the sharing of the funds set forth in its item I, seeking to promote social and economic balance among states and among municipalities;
3. provide for the monitoring, by the beneficiaries, of the calculation of the quotas and release of the participations set forth in articles 157, 158 and 159.

Article 162. The Union, the states, the Federal District and the municipalities shall announce, on or before the last day of the month following that of collection, the amounts of each of the tributes collected, the funds received. the tax sums remitted and to be remitted and the numerical expression of the apportionment criteria.

Sole paragraph - The data announced by the Union shall be discriminated by state and by municipality; those of the states, by municipality.

Article 163. A supplementary law shall make provisions for:

1. public finances;
2. foreign and domestic public debt, including the debt of the autonomous government agencies, foundations and other entities controlled bv the Government:
3. granting of guarantees by government entities; I
4. issuance and redemption of public debt bonds;
5. supervision of financial institutions;
6. foreign exchange transactions carried out by bodies and agencies of the Union, of the states, of the Federal District and of the municipalities;
7. compatibility of the functions of the official credit institutions of the Union, safeguarding all the characteristics and full operational conditions of those intended for regional development.

Paragraph 1 - It is forbidden for the central bank to grant, either directly or indirectly, loans to the National Treasury and to any body or agency which is not a financial institution.

Paragraph 2 - The central bank may purchase and sell bonds issued by the National Treasury, for the purpose of regulating the money supply or the interest rate.

Paragraph 3 - The cash assets of the Union shall be deposited at the central bank, those of the states, of the Federal District, of the municipalities and of the bodies or agencies of the Government and of the companies controlled by the same, at official financial institutions, excepting the cases established in law.

Article 165. Laws of the initiative of the Executive Power shall establish:

1. the pluriannual plan;
2. the budgetary directives;
3. the annual budgets.

Paragraph 2 - The law of budgetary directives shall comprise the targets and priorities of the federal public administration, including the capital expenditures for the subsequent fiscal year, shall guide the drawing up of the annual budget law, shall make provisions for alterations in tax legislation and shall establish the investment policy for the official development financing agencies.

Paragraph 3 - The Executive Power shall, within thirty days after the closing of each two-month period, publish a summarized report on budget implementation.

Paragraph 4 - The national, regional and sectorial plans and programmes set forth in this Constitution shall be drawn up in compliance with the pluriannual plan and shall be examined by the National Congress.

Paragraph 5 - The annual budget law shall include:

1. the fiscal budget regarding the Powers of the Union? their funds, bodies and entities of the direct and indirect administration, including foundations instituted and maintained by the Government:
2. the investment budget of companies in which the Union directly or indirectly holds the majority of the voting capital;
3. the social welfare budget, comprising all direct and indirect administration entitles or bodies connected with social security, as well as funds and foundations instituted and maintained bv the Government

Paragraph 7 - The functions of the budgets set forth in paragraph 5, 1 and 11, of the present article, compatible with the pluriannual plan, shall include the function of reducing interregional inequalities, according to populational criteria.

Paragraph 8 - The annual budget law shall not contain any provision extraneous to a forecast of revenues and to the establishment of expenses, such prohibition not including authorization to open supplementary credits and to contract credit transactions, even if by advance of revenues, under the terms of the law.

Paragraph 9 - A supplementary law shall:

1. make provisions for the fiscal year, effectiveness, terms, drawing up and organization of the pluriannual plan, of the law of budgetary directives and of the annual budget law;
2. establish rules for the financial and property management of the direct and indirect administration, as well as conditions for the institution and operation of funds.

Paragraph 1 - It is incumbent upon a permanent joint committee of Senators and Deputies to:

1. examine and issue its opinion on the bills referred to in the present article and on the accounts submitted annually by the President of the Republic;
2. examine and issue its opinion on the national, regional and sectorial plans and programmes established in this Constitution, and exercise budgetary monitoring and supervision, without affecting the operation of the other committees of the National Congress and of its Houses, created in accordance with article 58.

Paragraph 3 - Amendments to the bill of the annual budget or to the bills which modify it may only be approved if:

1. they are compatible with the pluriannual plan and with the law of budgetary directives;
2. they specify the necessary funds, allowing only those resulting from the annulment of expenses, and excluding those which apply to:
   1. allocations for personnel and their charges;
   2. debt servicing;
   3. constitutional tax transfers to the states, the municipalities and the Federal District; or
3. they are related:
   1. to the correction of errors or omissions; or
   2. to the provisions of the text of the bill of law

Paragraph 5 - The President of the Republic may send a message to the National Congress to propose modifications in the bills referred to in the present article as long as the joint committee has not started to vote on the part for which an alteration is being proposed.

Paragraph 6 - The bills of the pluriannual plan law, of the law of budgetary directives and of the annual budget law shall be forwarded by the President of the Republic to the National Congress, under the terms of the supplementary law referred to in article 165, paragraph 9.

Paragraph 7 - The other rules regarding legislative procedure shall apply to the bills mentioned in this article, as long as they are not contrary to the provisions of this section.

Paragraph 8 - Any funds which, as a result of a veto, amendment or rejection of the bill of the annual budget law, have no corresponding expenses, may be allocated, as the case may be, by means of special or supplementary credits, with prior and specific legislative authorization.

Article 167. The following are forbidden:

1. to begin programmes or projects not included in the annual budget law;
2. to incur expenses or to assume direct obligations which exceed the budgetary or additional credits;
3. to carry out credit transactions, which exceed the amount of capital expenses, excepting those authorized by means of supplementary or special credits with a specific purpose and approved by an absolute majority of the Legislative Power:
4. to bind tax revenues to an agency, fund or expense, excepting the sharing of the proceeds from the collection of the taxes referred to in articles 158 and 159, the allocation of funds for the maintenance and development of education, as determined in article 212, and the granting of guarantees on credit transactions by advance of revenues, as established in article 165? paragraph 8, as well as in paragraph 4 of the present article;
5. to open a supplementary or special credit without prior legislative authorization and without specification of the corresponding funds;
6. to reassign, reallocate or transfer funds from one programming category to another or from one agency to another without prior legislative authorization;
7. to grant or use unlimited credits;
8. to use, without specific legislative authorization, funds from the fiscal and social security budgets to supply a necessity or to cover a deficit of companies, foundations and funds, including those mentioned in article 165, paragraph 5;
9. to institute funds of any nature without prior legislative authorization.

Paragraph 2 - Special and extraordinary credits shall be effective in the fiscal year in which they are authorized, unless the authorization act is enacted during the last four months of that fiscal year, in which case, reopened within the limits of their balances, such credits shall be incorporated into the budget of the subsequent fiscal year.

Paragraph 3 - The opening of extraordinary credit may only be allowed to meet unforeseeable and urgent expenses, such as those resulting from war, internal commotion or public calamity, observing the provisions in article 62.

Paragraph 4 - It is permitted to bind proper revenues generated by the taxes referred to in articles 155 and 156 and the funds mentioned in articles l57, 158 and 159, I, a and b, and II, to the granting of a guarantee or a counterguarantee to the Union, and to the payment of debits owed to the same.

Article 168. The funds corresponding to the budgetary allocations, including the supplementary and special credits, intended for the bodies of the Legislative and Judicial Powers and for the Public Prosecution, shall be remitted to them on or before the twentieth of each month, as provided by the supplementary law referred to in article 165 paragraph 9.

Article 169. Expenditure with active and pensioned personnel of the Union, the states, the Federal District and the municipalities may not exceed the limits established in a supplementary law.

Sole paragraph - The granting of any advantage or increase of remuneration the creation of posts or alteration of career structures, as well as admission of personnel, on any account, by bodies and entities of the direct or indirect administration, including foundations instituted and maintained by the Government, may only be effected:

1. if there is a prior budgetary allocation sufficient to cover the estimated expenditure with personnel and the increases resulting therefrom;
2. if there is specific authorization in the law of budgetary directives, excepting the public and the mixed-capital companies.