- Brazil’s lower house of Congress passed legislation for tax system overhaul
- Lawmakers demanded reforms to simplify taxation regime and reduce business costs
- High compliance costs in Brazil compared to neighboring countries
- Key driver for tax reforms is to streamline consumption taxes currently at 34%
- Expectations that digitalizing the system will curb tax evasion and fraud
- Amended bill limits consumption tax rate to 26.5% and consolidates five taxes into a single VAT
- Special tax introduced on products like cigarettes, alcohol, gambling machines, and EVs for health and environmental reasons
Source: regfollower.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.
