Brazilian Government Proposes Tax Overhaul to Boost Economic Growth and Streamline Compliance Costs

• Brazil’s government submitted proposed rules to Congress for a tax overhaul
• The reform aims to streamline the tax framework and enhance productivity
• The reform consolidates five existing levies into a value-added tax with separate federal and regional rates
• A selective tax targeting harmful products is also introduced
• The consumption tax rate is currently around 34%
• The reform is expected to make the system digital and reduce evasion and fraud
• The average tax rate with the reform is expected to be 26.5%
• The tax reform is expected to drive down prices of popular consumer products
• More details of the bill will be disclosed in a press conference on Thursday

Source: reuters.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.

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