CONARE warns tax reform could impact public university funding

The National Council of Rectors (CONARE) has expressed concern regarding Bill 25.797, the Tax Benefits Regime and Tax Expenditure Control Law, recently presented by the Ministry of Finance to the Legislative Assembly.

The proposed legislation seeks to reform the tax benefits regime and could eliminate certain tax exemptions currently applied to public institutions, including public universities. CONARE warns that modifying the tax treatment for the purchase of goods and services necessary for university operations could increase operating costs. This would force institutions to divert resources away from essential functions such as teaching, research, extension, and social action.

CONARE is calling for a review of Articles 39, 40, and 41 of the bill. The council emphasizes that any analysis must respect Article 85 of the Political Constitution, which establishes a special fund for the financing of State Higher Education and stipulates that its revenues cannot be abolished or diminished without simultaneous improvements.