Lower house approves major tax overhaul in Brazil

July 11, 2024

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

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Colombia

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Haiti

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Chile

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El Salvador

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Argentina

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Regional

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