- Brazil’s lower house approved the tax reform on 15 December 2023.
- The reform aims to simplify the tax system by consolidating five existing taxes into a value-added tax (VAT) with distinct federal and regional rates.
- It includes a seven-year transition period and aims to be fully implemented by 2033.
- The goals of the reform are simplification, transparency, and encouraging the economy.
- The proposed schedule includes gradual changes in tax rates until full implementation in 2033.
- Additionally, the reform introduces a selective tax targeting environmentally and health-harmful products and changes tax collection from origin to destination over 50 years, starting in 2029.
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