On 10 July, the House of Representatives approved the main text of the first Brazilian Tax Reform regulation, which is now awaiting Senate approval. The reform simplifies the tax system, replacing multiple taxes with new consumption taxes, aiming for a more efficient and equitable system. Key highlights include the addition of beef and chicken to the list of tax-exempt products in the basic food, the replacement of five current taxes with three new consumption taxes, and significant changes to taxes on various products. The reform aims to maintain the current tax burden, cap the new model at 26.5% of product prices, and make taxes non-cumulative to reduce production costs and potentially lower consumer prices.
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