Brazil is inching closer to a major tax overhaul, as the country’s lower house approved the main text of a bill that would significantly alter the existing tax system, says Reuters. The reform, initially approved in December, was then sent to a special working group in the lower house, which discussed specific regulations for each sector of the economy. Yesterday, representatives voted on the documents presented by the working group (BN Americas).
The Brazilian Report offers a detailed overview of the proposed tax reforms. In particular, the bill proposes merging five different taxes into one “value-added tax (VAT),” with different rates at the national and regional levels. A maximum rate of 26.5% was established for the overall consumption tax. The bill also proposes “a tax on products considered harmful to the environment or human health, like cigarettes and alcoholic beverages.” (Reuters)
Various industries are concerned about tax increases and levies, including the infrastructure and mining industries, and those in the water and sanitation sector, explained BN Americas. These increases could also lead to increases in consumer prices in the long term.
The bill will then be sent to the Senate for another vote.
More Brazil
Prolonged droughts are expected in Brazil through November, setting off alarm bells among Brazilian regulators and government agencies who are worried the lack of water could result in significant power outages across the Amazon, reports Brazilian Report.
Venezuela
Maria Corina Machado, the main figure of the Venezuelan opposition, has been banned from running in the upcoming elections. Her continued influence, however, could still play an important role among citizens, says Bloomberg.
Colombia
In a speech, Colombian President Gustavo Petro asked for international assistance on issues related to the Amazon jungle or drug trafficking in an effort to further advance with the agreement signed between the government and the Revolutionary Armed Forces of Colombia (FARC), reports Prensa Latina.
The outcome of Venezuela’s election could have profound impacts on Colombia’s future, writes Ronal F. Rodriguez for La Silla Vacía. Increased migration from Venezuelans has caused Colombia’s government to address security and welfare issues, among others, more than any other country affected by the Venezuelan crisis.
Haiti
The U.S. Institute of Peace published a report on how Colombia and Guatemala’s transitional restorative justice model and hybrid prosecution system, respectively, could offer lessons for Haiti as it seeks to find a way out of its current turmoil.
Chile
Homelessness in Chile has risen more than 30% over the last four years, reports AP News, a sharp increase for “a country considered far wealthier and more stable than its neighbors.”
El Salvador
Cristosal, a human rights organization in El Salvador, reported that at least 261 people have died in prison during the country’s state of emergency, implemented by President Nayib Bukele in 2022 to crack down on gangs, says AP News.
Argentina
The Regime of Incentives for Large Investments (RIGI), a bill awaiting final approval in Congress, has the potential to attract significant investments in Argentina’s oil and gas industry. However, environmentalists point out that the bill would signal the end of any serious effort towards energy transition and could have severe effects on the environment, says the Guardian.
New measures to the transport sector industry, including allowing for easier industry entry for new operators as well as a deregulation of certain procedures at airports, has spurred immediate pushback from labor groups, says the Buenos Aires Times.
Internal divisions within the ruling La Libertad Avanza (LLA) party have made their way to the highest levels within the party, with Vice President Victoria Villarruel half-heartedly participating in some of Milei’s initiatives amid disagreements with General Secretary of the Presidency Karina Milei, writes Pablo Ibánez in Cenital.
Regional
Shannon O’Neil writes about Latin America’s decreasing economic growth as a cause of stagnant urban productivity and falling Chinese investment, among others, for the Council on Foreign Relations.
A Colombia win over Uruguay in last night’s Copa América match won them a spot in the finals for the first time in years. Colombia will face reigning champion Argentina on Sunday in Miami. (Forbes)
Brazil's "tax on products considered harmful to the environment or human health"—now that's smart, humane government!