- A tax reform that will restructure Brazil’s complex consumption taxes has been approved by the lower house of Congress.
- The reform, which aims to boost growth, will merge five levies into a value-added tax (VAT) with separate federal and regional rates from 2026.
- The tax basis will shift from where goods are produced to where they are consumed over a 50-year transition period from 2029.
- The bill will now be sent to the Senate for voting.
- The reform is expected to face opposition in the Senate, where state governors hold greater influence, but Finance Minister Fernando Haddad said he does not expect it to face much opposition.
Source Reuters
Latest Posts in "Brazil"
- Brazil Introduces Personalised VAT Cashback for Low-Income Families
- Brazil’s 2026–32 VAT Reform: Targeted Cashback Relief for Low-Income Households via Digital Refunds
- São Paulo and Alagoas Overhaul VAT (ICMS) Regimes Effective April 2026: Key Changes Announced
- Brazil’s Nationwide Software Fiscalization and E-Commerce Invoicing: Rules, Compliance, and Consumer Protection
- Brazil Enacts Second Law to Implement New VAT System, Unifying Taxes and Adding Social Measures
