Article 126 — For the settlement of conflicts relating to land property, the Court of

Justice shall propose the creation of specialized single-judge courts, with exclusive competence for agrarian matters. ( ca n o. 45, 2004) Sole paragraph. Whenever efficient jurisdictional service requires it, the judge shall go personally to the site of the litigation. CH a P te R i V t he f unctions e ssential to Justice se C tion i t he p ublic p rosecution ar ticle 127. th e pu blic pr osecution is a permanent institution, essential to the jurisdictional function of the State, and it is its duty to defend the juridical order, the democratic regime and the inalienable social and individual interests. ( ca n o. 19, 1998; CA No. 45, 2004) p aragraph 1. u nity, indivisibility and functional independence are institutional principles of the p ublic p rosecution. p aragraph 2. t he p ublic p rosecution is ensured of functional and administrative autonomy, and it may, observing the provisions of article 169, propose to the le gislative Power the creation and abolishment of its offices and auxiliary services, filling them through a civil service entrance examination of tests or of tests and presentation of academic and professional credentials, the remuneration policies, and the career plans; the law shall provide for its organization and operation. p aragraph 3. t he p ublic p rosecution shall prepare its budget proposal within the limits established in the law of budgetary directives. p aragraph 4. i f the p ublic p rosecution does not forward its respective budget proposal within the time period stipulated in the law of budgetary directives, the Executive Power shall, with a view to engrossing the annual budget proposal, take into account the figures approved in the current budgetary law, such figures adjusted in accordance with the limits stipulated under the terms of paragraph 3. p aragraph 5. i f the budget proposal referred to in this article and thus forwarded does not obey the limits stipulated under paragraph 3, the ex ecutive po wer shall effect the necessary adjustments with a view to engrossing the annual budget proposal. Paragraph 6. In the implementation of the budget of a specific fiscal year, no expenses may be incurred and no obligations may be assumed that exceed the limits stipulated in the law of budgetary directives, except when previously authorized, by opening supplementary or special credits. a rticle 128. The Public Prosecution comprises: (CA No. 19, 1998; CA No. 45, 2004) I – the Public Prosecution of the Union, which includes: a) the Federal Public Prosecution; miolo_constitution_versao_camara.indd 96 17/6/2010 15:01:04 The Organization of the Powers 97 b) the Labour Public Prosecution; c) the Military Public Prosecution;d) the Public Prosecution of the Federal District and the Territories; ii – the p ublic p rosecutions of the states. pa ragraph 1. th e head of the pu blic pr osecution of the un ion is the at torney- General of the re public, appointed by the pr esident of the re public from among career members over thirty-five years of age, after his name has been approved by the absolute majority of the members of the Federal Senate, for a term of office of two years, reappointment being allowed. pa ragraph 2. th e removal of the at torney-General of the re public, on the initiative of the President of the Republic, shall be subject to prior authorization by the absolute majority of the Federal Senate. p aragraph 3. t he p ublic p rosecutions of the states, of the f ederal d istrict and the territories shall prepare a list of three names from among career members, under the terms of the respective law, for the selection of their a ttorney-General, who shall be appointed by the Head of the Executive Power for a term of office of two years, one reappointment being allowed. p aragraph 4. t he a ttorneys-General in the states, in the f ederal d istrict and the Territories may be removed from office by deliberation of the absolute majority of the l egislative p ower, under the terms of the respective supplementary law. pa ragraph 5. su pplementary laws of the un ion and of the states, which may be proposed by the respective Attorneys-General, shall establish the organization, the duties and the statute of each Public Prosecution, observing, as regards their members: I – the following guarantees: a) life tenure, after two years in office, with loss of office only by a final and unappealable judicial decision; b) irremovability, save for reason of public interest, through decision of the competent collegiate body of the p ublic p rosecution, by the vote of the absolute majority of its members, full defense being ensured; c) irreducibility of compensation, stipulated according to article 39, paragraph 4, and with due regard for the provisions of articles 37, X and XI, 150, II, 153, III, 153, paragraph 2, I; II – the following prohibitions: a) receiving, on any account or for any reason, fees, percentages or court costs; b) practicing the legal profession;c) participating in a commercial company, under the terms of the law;d) exercising, even when on paid availability, any other public function, except for a teaching position; e) engaging in political or party activities; miolo_constitution_versao_camara.indd 97 17/6/2010 15:01:04 Constitution of the Federative Republic of Brazil 98 f) receiving, on any account or for any reason, financial aid or contribution from individuals, and from public or private institutions, save for the exceptions set forth in law. p aragraph 6. t he provisions of article 95, sole paragraph, v, shall apply to the members of p ublic p rosecution. a rticle 129. The following are institutional functions of the Public Prosecution: ( ca n o. 45, 2004) i – to initiate, exclusively, public criminal prosecution, under the terms of the law; ii – to ensure effective respect by the p ublic a uthorities and by the services of public relevance for the rights guaranteed in this Constitution, taking the action required to guarantee such rights; iii – to institute civil investigation and public civil suit to protect public and social property, the environment and other diffuse and collective interests; iv – to institute action of unconstitutionality or representation for purposes of intervention by the un ion or by the states, in the cases established in this Constitution; V – to defend judicially the rights and interests of the Indian populations; VI – to issue notifications in administrative procedures within its competence, requesting information and documents to support them, under the terms of the respective supplementary law; vii – to exercise external control over police activities, under the terms of the supplementary law mentioned in the previous article; v iii – to request investigatory procedures and the institution of police investigation, indicating the legal grounds of its procedural acts; i X – to exercise other functions which may be conferred upon it, provided that they are compatible with its purpose, with judicial representation and judicial consultation for public entities being forbidden. pa ragraph 1. le gitimation by the pu blic pr osecution for the civil actions set forth in this article shall not preclude those of third parties in the same cases, according to the provisions of this c onstitution and of the law. pa ragraph 2. th e functions of pu blic pr osecution may only be exercised by career members, who must reside in the judicial district of their respective assignment, save when otherwise authorized by the head of the institution. Paragraph 3. Admission into the career of Public Prosecution shall take place by means of a civil service entrance examination of tests and presentation of academic and professional credentials, ensuring participation by the Brazilian Bar Association in such examination, at least three years of legal practice being required of holders of a B.A. in law, and observing, for appointment, the order of classification. p aragraph 4. t he provisions of article 93 shall apply to the p ublic p rosecution, where appropriate. miolo_constitution_versao_camara.indd 98 17/6/2010 15:01:04 The Organization of the Powers 99 pa ragraph 5. in the pu blic pr osecution, proceedings will be assigned immediately upon filing. ar ticle 130. th e provisions of this section concerning rights, prohibitions and form of investitute apply to the members of the p ublic p rosecution before the a udit c ourts. a rticle 130- a . t he n ational c ouncil of the p ublic p rosecution is composed of fourteen members appointed by the p resident of the r epublic, after their nomination has been approved by the absolute majority of the Federal Senate, for a two-year term of office, one reappointment being permitted, as follows. (CA No. 45, 2004) I – the Attorney-General of the Republic, who chairs the Council; ii – four members of the p ublic p rosecution of the u nion, representing each one of its careers; III – three members of the Public Prosecution of the States; IV – two judges, one of whom nominated by the Supreme Federal Court and the other one by the Superior Court of Justice; V – two lawyers, nominated by the Federal Board of the Brazilian Bar Association; VI – two citizens of notable juridical learning and spotless reputation, one of whom nominated by the c hamber of d eputies and the other one by the f ederal s enate. pa ragraph 1. th e members of the co uncil who are members of the pu blic pr osecution shall be nominated by their respective bodies, under the terms of the law. p aragraph 2. i t is incumbent upon the n ational c ouncil of the p ublic p rosecution to control the administrative and financial operation of the Public Prosecution and the proper discharge of official duties by its members, and it shall: i – ensure that the pu blic pr osecution is autonomous in its operation and administration, and it may issue regulatory acts within its jurisdiction, or recommend measures; II – ensure that article 37 is complied with, and examine, ex-officio or upon request, the legality of administrative acts carried out by members or bodies of the Public Prosecution of the Union and of the States, and it may revoke or review them, or stipulate a deadline for the adoption of the necessary measures to achieve due execution of the law, without prejudice to the powers of Audit Courts; iii – receive and examine complaints against members or bodies of the p ublic p rosecution of the u nion or of the s tates, including against their ancillary services, without prejudice to such institutions’ disciplinary competence and their power to correct administrative acts, and it may order that pending disciplinary proceedings be forwarded to the na tional co uncil of the pu blic pr osecution, determine the removal, placement on paid availability, or retirement with compensation or pension in proportion to the length of service, and enforce other administrative sanctions, full defense being ensured; miolo_constitution_versao_camara.indd 99 17/6/2010 15:01:04 Constitution of the Federative Republic of Brazil 100 iv – review, ex-officio or upon request, disciplinary proceedings against members of the p ublic p rosecution of the u nion or of the s tates tried in the preceding twelve months; v – prepare a yearly report, including the measures it deems necessary, on the state of the Public Prosecution in the Country and on the Council’s activities, which report must be an integral part of the message referred to in article 84, X i . p aragraph 3. t he c ouncil shall, by means of secret voting, choose a national c orregidor, from among the members of the p ublic p rosecution who compose the c ouncil, reappointment being forbidden, and the following duties shall be incumbent upon him, in addition to those that may be conferred upon him by law: i – to receive complaints and accusations from any interested party regarding members of the Public Prosecution and its ancillary services; ii – to exercise executive functions of the c ouncil concerning inspection and general correction; iii – to requisition and appoint members of the p ublic p rosecution, delegating specific duties to such members, and to requisition employees of Public Prosecution bodies. Paragraph 4. T he Chairman of the Federal Board of the Brazilian Bar Association shall be competent to petition before the c ouncil. Paragraph 5. Federal and state legislation shall establish ombudsman’s offices for the p ublic p rosecution, with powers to receive complaints and accusations from any interested party against members or bodies of the p ublic p rosecution, including against their ancillary services, thus presenting formal charges directly to the na tional c ouncil of the p ublic p rosecution. se C tion ii t he p ublic a dvocacy ( ca n o. 19, 1998) a rticle 131. t he a dvocacy-General of the u nion is the institution which, either directly or through a subordinated agency, represents the Union judicially or extrajudicially, and it is responsible, under the terms of the supplementary law which provides for its organization and operation, for the activities of judicial consultation and assistance to the e xecutive p ower. p aragraph 1. t he a dvocacy-General of the u nion is headed by the a dvocate- General of the u nion, freely appointed by the p resident of the r epublic from among citizens over thirty-five years of age, of notable juridical learning and spotless reputation. pa ragraph 2. ad mission into the initial classes of the careers of the institution dealt with in this article shall take place by means of a civil service entrance examination of tests and presentation of academic and professional credentials. p aragraph 3. i n the execution of receivable taxes of a tributary nature, the u nion shall be represented by the office of the Attorney-General of the Public Finances, observing the provisions of the law. miolo_constitution_versao_camara.indd 100 17/6/2010 15:01:04 The Organization of the Powers 101 ar ticle 132. T he Prosecutors of the states and of the Federal District, organized in a career, admission into which shall depend on a civil service entrance examination of tests and presentation of academic and professional credentials, with the participation of the Brazilian Bar Association in all of its stages, shall exercise judicial representation and judicial consultation for their respective federated units. (CA No. 19, 1998) Sole paragraph. t he p rosecutors referred to in this article are entitled to acquire tenure after three years of effective exercise, by means of a performance appraisal carried out by the relevant agencies, following a detailed report issued by the corregidors. se C tion iii t he l egal p rofession and the p ublic l egal d efense a rticle 133. The lawyer is indispensable to the administration of justice and is inviolable for his acts or manifestations in the exercise of his profession, within the limits of the law. ar ticle 134. T he Public Legal Defense is an essential institution to the jurisdictional function of the State and is responsible for the judicial guidance and the defense, in all levels, of the needy, under the terms of article 5, l XX iv. ( ca n o. 45, 2004) Paragraph 1. A supplementary law shall organize the Public Legal Defense of the u nion, of the f ederal d istrict and the territories and shall prescribe general rules for its organization in the states, into career offices filled, in the initial class, by means of a civil service entrance examination of tests and presentation of academic and professional credentials, with the guarantee of irremovability being ensured to its members and the practice of the legal profession beyond the institutional attributions being forbidden. pa ragraph 2. th e pu blic le gal de fense of each state shall be ensured of functional and administrative autonomy, as well as the prerogative to present its budget proposal within the limits set forth in the law of budgetary directives and in due compliance with the provisions of article 99, paragraph 2. ar ticle 135. se rvants in the careers regulated in se ctions i i and i ii of this ch apter shall be remunerated according to article 39, paragraph 4. ( c a no . 19, 1998) miolo_constitution_versao_camara.indd 101 17/6/2010 15:01:04 The Organization of the Powers 103 title V t he Defense of the s tate and of the Democratic i nstitutions CHaPteR i t he s tate of d efense and the s tate of s iege se C tion i t he s tate of d efense a rticle 136. t he p resident of the r epublic may, after hearing the c ouncil of the r epublic and the n ational d efense c ouncil, decree a state of defense to preserve or to promptly re-establish, in specific and restricted locations, the public order or the social peace threatened by serious and imminent institutional instability or affected by major natural calamities. pa ragraph 1. th e decree instituting the state of defense shall determine the period of its duration, shall specify the areas to be encompassed and shall indicate, within the terms and limitations of the law, the coercive measures to be in force from among the following: I – restrictions to the rights of: a) assembly, even if held within associations; b) secrecy of correspondence; c) secrecy of telegraph and telephone communication; ii – in the event of a public calamity, occupation and temporary use of public property and services, the u nion being liable for the resulting damages and costs. p aragraph 2. t he state of defense shall not exceed thirty days and it may be extended once for an identical period if the reasons that justified its decreeing persist. Paragraph 3. During the period in which the state of defense is in force: i – arrest for a crime against the s tate, determined by the party executing the measure, shall be immediately communicated by such party to the competent judge, who shall remit it if it is illegal, it being the arrested person’s choice to request examination of corpus delicti from the police authority; ii – the communication shall be accompanied by a statement by the authority as to the physical and mental state of the arrested person at the time of the filing of the charges; iii – the imprisonment or detention of any person shall not exceed ten days, unless authorized by the Judicial Power; iv – incommunicability of the arrested person is forbidden. pa ragraph 4. up on decreeing a state of defense or extension thereof, the pr esident of the r epublic shall, within twenty-four hours, submit the act with the respective justification to the National Congress, which shall decide by absolute majority . miolo_constitution_versao_camara.indd 103 17/6/2010 15:01:04 Constitution of the Federative Republic of Brazil 104 pa ragraph 5. if the na tional co ngress is in recess, it shall be called extraordinarily within five days. pa ragraph 6. th e na tional co ngress shall examine the decree within ten days as from receipt thereof, and shall remain in operation as long as the state of defense is in force. Paragraph 7. I f the decree is rejected, the state of defense shall cease immediately. se C tion ii t he s tate of s iege a rticle 137. t he p resident of the r epublic may, after hearing the c ouncil of the Republic and the National Defense Council, request authorization from the National Congress to decree the state of siege in the event of: i – serious disturbance with nationwide effects or ocurrence of facts that evidence the innefectiveness of a measure taken during the state of defense; ii – declaration of state of war or response to foreign armed agression. Sole paragraph. The President of the Republic shall, on requesting authorization to decree the state of siege or to extend it, submit the reasons that determine such request, and the National Congress shall decide by absolute majority . a rticle 138. t he decree of the state of siege shall specify the period of its duration, the rules required to implement it and the constitutional guarantees that are to be suspended and, after it is published, the p resident of the r epublic shall designate the executor of the specific measures and the areas encompassed. Paragraph 1. I n the event of article 137, I, the state of siege may not be decreed for more than thirty days nor may each extension exceed such period; in the event of item ii , it may be decreed for the entire period of the war or foreign armed aggression. Paragraph 2. I f authorization to decree the state of siege is requested during parliamentary recess, the p resident of the f ederal s enate shall immediately summon an extraordinary session of the National Congress to convene within five days in order to examine the act. p aragraph 3. t he n ational c ongress shall remain in session until the end of the coercive measures. ar ticle 139. D uring the period in which the state of siege decreed under article 137, I, is in force, only the following measures may be taken against persons: I – obligation to remain at a specific place; ii – detention in a building not intended for persons accused of or convicted for common crimes; iii – restrictions regarding the inviolability of correspondence, the secrecy of communications, the rendering of information and the freedom of press, radio broadcasting and television, as established by law; IV – suspension of freedom of assembly; miolo_constitution_versao_camara.indd 104 17/6/2010 15:01:04 The Organization of the Powers 105 V – home search and seizure; VI – intervention in public utility companies; vii – requisitioning of property. Sole paragraph. t he broadcasting of speeches made by c ongressmen in their Legislative Houses is not included in the restrictions of item III, if authorized by the respective d irecting b oard. se C tion iii General p rovisions a rticle 140. t he d irecting b oard of the n ational c ongress shall, after hearing the party leaders, designate a Committee comprised of five of its members to monitor and supervise the implementation of the measures concerning the state of defense and the state of siege. a rticle 141. o nce the state of defense or the state of siege ceases, its effects shall also cease, without prejudice to liability for illicit acts performed by the executors or agents thereof. Sole paragraph. as soon as the state of defense or the state of siege ceases, the measures applied during the period while it is in force shall be reported by the President of the Republic in a message to the National Congress, with specification and justification of the actions taken, with the listing of the names of those affected and indication of the restrictions applied. CH a P te R ii t he a rmed f orces ar ticle 142. th e ar med fo rces, comprised of the na vy, the ar my and the ai r fo rce, are permanent and regular national institutions, organized on the basis of hierarchy and discipline, under the supreme authority of the p resident of the r epublic, and are intended for the defense of the c ountry, for the guarantee of the constitutional powers, and, on the initiative of any of these, of law and order. (CA No. 18, 1998; ca n o. 41, 2003) p aragraph 1. a supplementary law shall establish the general rules to be adopted in the organization, training and use of the Armed Forces. pa ragraph 2. H abeas corpus shall not apply to military disciplinary punishments. pa ragraph 3. th e members of the ar med fo rces are called military, and the following provisions apply to them, in addition to other provisions that the law may establish: I – the ranks, with the prerogatives, rights and duties inherent to them, are awarded by the President of the Republic and are guaranteed in full to officers in active service, those of the reserve or in retirement, and such officers have exclusive miolo_constitution_versao_camara.indd 105 17/6/2010 15:01:04 Constitution of the Federative Republic of Brazil 106 rights to military titles and posts, and, together with the other members, to the use of the uniforms of the Armed Forces; II – a military in active service who takes office in a permanent civil public position or job shall be transferred to the reserve, under the terms of the law; III – a military in active service who, under the terms of the law, takes office in a non-elective, temporary civil public position, job or function, even if in the indirect administration, shall be put on leave and, as long as he remains in this situation he may only be promoted by seniority and his period of service shall be counted only for that promotion and for transfer to the reserve, and after two years, whether continuous or not, away from active service, he shall be transferred to the reserve, under the terms of the law; IV – the military are forbidden to join unions and to strike; v – while in active service, the military are forbidden to belong to political parties; VI – an officer shall only lose his post and rank if he is judged unworthy of or incompatible with the dignity of officership by decision of a permanent military court, in times of peace, or of a special court, in times of war; VII – an officer sentenced in a common or military court by means of an unappealable judgment to imprisonment for more than two years shall be submitted to trial as provided in the preceding item; VIII – the provisions of article 7, items VIII, XII, XVII, XVIII, XIX and XXV , and of article 37, items XI, XIII, XIV and XV , apply to the military; IX – (revoked); X – the law shall provide for admission to the ar med fo rces, age limits, tenure, and other conditions for a military to be retired, the rights, duties, remuneration, prerogatives and other circumstances which are specific to the military, the special characteristics of their activities being taken into account, including those carried out by virtue of international agreements and of war. a rticle 143. Military service is compulsory as set forth by law . pa ragraph 1. it is within the competence of the ar med fo rces, according to the law, to assign an alternative service to those who, in times of peace, after being enlisted, claim imperative of conscience, which shall be understood as originating in religious creed and philosophical or political belief, for exemption from essentially military activities. Paragraph 2. W omen and clergymen are exempt from compulsory military service in times of peace, but are subject to other duties assigned to them by law . CH a P te R iii p ublic s ecurity a rticle 144. p ublic security, the duty of the s tate and the right and responsibility of all, is exercised to preserve public order and the safety of persons and property, by means of the following agencies: (CA No. 19, 1998) miolo_constitution_versao_camara.indd 106 17/6/2010 15:01:04 The Defense of the State and of the Democratic Institutions 107 I – federal police; II – federal highway police;III – federal railway police;IV – civil polices;V – military polices and military fire brigades. Paragraph 1. T he federal police, instituted by law as a permanent body, organized and maintained by the Union and structured into a career, are intended to: i – investigate criminal offenses against the political and the social order or to the detriment of property, services and interests of the u nion and of its autonomous government entities and public companies, as well as other offenses with interstate or international effects and requiring uniform repression as the law shall establish; II – to prevent and repress the illegal traffic of narcotics and like drugs, as well as smuggling, without prejudice to action by the treasury authorities and other government agencies in their respective areas of competence; III – exercise the functions of maritime, airport and border police; iv – to exercise, exclusively , the functions of criminal police of the u nion. Paragraph 2. The federal highway police are a permanent body organized and maintained by the u nion, structured into a career, and intended, according to the law, to patrol ostensibly the federal highways. Paragraph 3. The federal railway police are a permanent body organized and maintained by the u nion, structured into a career, and intended, according to the law, to patrol ostensibly the federal railways. pa ragraph 4. it is incumbent upon the civil police, directed by career police comissioners and except for the competence of the u nion, to exercise the functions of criminal police and to investigate criminal offenses, with the exception of the military ones. p aragraph 5. i t is within the competence of the military polices the ostensive policing and the maintenance of the public order; it is incumbent upon the military fire brigades, in addition to the duties defined by law, to carry out activities of civil defense. Paragraph 6. The military polices and military fire brigades, ancillary forces and reserve of the Army, are subject, together with the civil police, to the Governors of the states, of the f ederal d istrict and of the territories. Paragraph 7. T he law shall regulate the organization and operation of the agencies responsible for public security in such a manner as to guarantee the efficiency of their activities. Paragraph 8. The municipalities may organize municipal guards to protect their property, services and facilities, as the law shall establish. pa ragraph 9. th e remuneration of the policemen who are members of the agencies mentioned in this article shall be stipulated according to paragraph 4 of article 39. miolo_constitution_versao_camara.indd 107 17/6/2010 15:01:04 The Defense of the State and of the Democratic Institutions 109 title Vi taxation and b udget CHaPteR i t he n ational tax s ystem se C tion i General p rinciples a rticle 145. t he u nion, the states, the f ederal d istrict and the municipalities may institute the following tributes: I – taxes; ii – 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; III – benefit charges, resulting from public works. Paragraph 1. Whenever possible, taxes shall have an individual character and shall be graded according to the economic capacity of the taxpayer, and the tax administration may, especially to confer effectiveness upon such objectives, with due respect to individual rights and under the terms of the law, identify the property, the incomes and the economic activities of the taxpayer. p aragraph 2. f ees may not have the assessment basis reserved for taxes. a rticle 146. A supplementary law shall: (CA No. 42, 2003) I – provide for conflicts of competence concerning tax matters between the Union, the states, the Federal District and the municipalities; II – regulate the constitutional limitations on the power to tax; III – establish general rules concerning tax legislation, especially with regard to:a) 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; b) tax liability, assessment, credit, limitation and laches; c) adequate tax treatment for the cooperative acts of cooperative associations.d) the definition of a differentiated and favorable tax treatment to be given to micro and small businesses, including special or simplified tax regimes in the case of the tax set forth in article 155, i i, the contributions set forth in article 195, i, and paragraphs 12 and 13, and the contribution referred to in article 239. Sole paragraph. th e supplementary law referred to in item i ii, d, may also establish a single regime for the collection of taxes and contributions owed to the u nion, the s tates, the f ederal d istrict, and the Municipalities, with due regard for the following: miolo_constitution_versao_camara.indd 109 17/6/2010 15:01:04 Constitution of the Federative Republic of Brazil 110 I – it shall be optional for the taxpayer; II – different eligibility requirements may be established for each State;III – payment of said tributes shall be unified and centralized, and the distribution of the share of funds belonging to the respective units of the f ederation shall be immediate, any withholding or establishment of conditions being forbidden; iv – collection, control, and claiming of payment may be shared by the units of the f ederation, a single national roster of taxpayers being adopted. ar ticle 146- a. a supplementary law may establish special criteria for taxation, with a view to preventing imbalances in competition, without prejudice to the power of the fe deral Government to establish, by law, rules for the same purpose. ( c a no . 42, 2003) ar ticle 147. in a federal territory, state taxes are within the competence of the un ion and, if the territory is not divided into municipalities, also municipal taxes; municipal taxes are within the competence of the f ederal d istrict. ar ticle 148. th e un ion may, by means of a supplementary law, institute compulsory loans: i – to meet extraordinary expenses resulting from public calamity, foreign war or the imminence thereof; ii – in the case of public investment of an urgent nature and relevant national interest, observing the provisions of article 150, iii , b. Sole paragraph. T he use of funds deriving from a compulsory loan shall be linked to the expense that justified the institution thereof. ar ticle 149. th e un ion 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. (CA No. 33, 2001; CA No. 41, 2003; CA No. 42, 2003) pa ragraph 1. th e states, the fe deral di strict, and the municipalities shall institute a contribution payable by their employees to fund the social security scheme referred to in article 40, for the benefit of such employees, and the respective rate may not be lower than the rate of the contribution paid by employees holding effective posts in the un ion. pa ragraph 2. th e social contribution taxes mentioned in the head paragraph of this article, as well as the contribution taxes regarding intervention in the economic domain: I – shall not be levied on export earnings; II – shall be also levied on the importation of foreign products or services; III – may have the following rates: a) ad valorem rates, having as basis the proceeds, gross revenues, or the value of the transaction, and, in the case of importation, the customs value; miolo_constitution_versao_camara.indd 110 17/6/2010 15:01:04 The Defense of the State and of the Democratic Institutions 111 b) specific rates, having as basis the unit of measurement adopted. p aragraph 3. a natural person who is the recipient in an import transaction may be held as equivalent to a corporate body, under the terms of the law. p aragraph 4. t he law shall establish the cases in which contributions will be levied only once. ar ticle 149- a. th e Municipalities and the fe deral di strict may establish a contribution, under the terms of their respective laws, to finance the public lighting service, with due regard for the provisions of article 150, i and i ii. (c a no . 39, 2002) Sole paragraph. t he contribution mentioned in the head paragraph of this article may be charged to the consumer’s electricity bill. se C tion ii l imitations on the p ower to tax a rticle 150. W ithout prejudice to any other guarantees ensured to the taxpayers, the Union, the states, the Federal District and the municipalities are forbidden to: (CA No. 3, 1993; CA No. 42, 2003) I – impose or increase a tribute without a law to establish it; i i – institute unequal treatment 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; III – collect tributes: a) for taxable events that occurred before the law which instituted or increased such tributes came into force; b) in the same fiscal year in which the law which instituted or increased such tributes was published; c) within the period of ninety days as from the date of publication of the law which instituted or raised such tributes, with due regard for the provision of letter b; IV – use a tribute for the purpose of confiscation; v – 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; VI – institute taxes on: a) the property, income or services of one another;b) temples of any denomination;c) 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; miolo_constitution_versao_camara.indd 111 17/6/2010 15:01:04 Constitution of the Federative Republic of Brazil 112 d) books, newspapers, periodicals and the paper intended for the printing thereof. p aragraph 1. t he prohibition set forth in item iii , b, shall not apply to the taxes provided upon in articles 148, I, 153, I, II, IV , and V; and 154, II; and the prohibition set forth in item iii , c, shall not apply to the taxes provided upon in articles 148, i , 153, I, II, III, and V; and 154, II, nor to the stipulation of the assessment basis of the taxes provided upon in articles 155, iii , and 156, i . p aragraph 2. t he prohibition set forth in item vi , 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. pa ragraph 3. th e prohibitions set forth in item v i, 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 promissor purchaser of real property from the obligation to pay tax thereon. p aragraph 4. t he 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. p aragraph 5. t he law shall determine measures for consumers to be informed about taxes levied on goods and services. pa ragraph 6. an y 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 of the payment of a tax or contribution, whose taxable event will occur later, the immediate and preferential restitution of the amount paid being ensured, in case the presumed taxable event does not occur. a rticle 151. It is forbidden for the Union: i – to institute a tribute which is not uniform throughout the entire national territory or which implies a distinction or preference regarding a state, the f ederal d istrict 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; ii – to tax income from public debt bonds of the states, of the f ederal d istrict 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; iii – to institute exemptions from tributes within the powers of the states, of the f ederal d istrict or of the municipalities. miolo_constitution_versao_camara.indd 112 17/6/2010 15:01:04 Taxation and Budget 113