- The Brazilian Congress has approved a tax reform bill known as Proposal for Amendment of the Brazilian Federal Constitution 45/2019 (PEC 45/19).
- The reform aims to unify state and municipal taxes into a goods and services tax (IBS) shared between states and municipalities.
- It also replaces social contributions on revenues and importation of goods and services with a contribution on goods and services (CBS) taxed by the federal government.
- The federal excise tax (IPI) will be replaced by a sin tax on goods and services (Selective Tax) considered harmful for health and the environment.
- Some improvements made by the Federal Senate were not included in the final bill, such as the prohibition on issuing tax rules without widely publicizing economic-financial impact studies.
- The new tax system will be implemented gradually between 2025 and 2032.
- The tax reform is seen as a major improvement for the Brazilian tax system and a step towards a modern and international VAT standard.
Source: internationaltaxreview.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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