Brazil’s lower house approves ‘historic’ tax reform bill

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.