- Brazil’s Chamber of Deputies has approved legislation for a major indirect tax reform, which must now be approved by the Senate.
- The reform will replace/unify several current indirect taxes with new taxes, including PIS, COFINS, IPI, ICMS, and ISS.
- The new taxes include CBS and IBS, administered by the federal government and representatives of the states and municipalities, respectively.
- A new federal selective tax (IS) will also be introduced.
- The new system will be introduced gradually over a period of seven years, beginning in 2026, with full implementation in 2033. Certain rate reductions will be provided for education services, public transportation, agricultural inputs, medical devices related to disabilities, basic medications, and specific sector tax incentives.
Source Orbitax
