Brazilian Congress Passes Law on Indirect Tax Reform Regulation

• Brazilian National Congress approves law regulating indirect tax reform
• The law, known as Project of Complementary Law (PLP) 68/24, was passed by the Chamber of Deputies after modifications from the Senate
• The law now awaits presidential approval
• The law details tax regimes including reductions or exemptions, cashback for low-income consumers, international online purchases, and linking payment mechanisms with the tax collection system
• The law aims to reduce the overall tax burden by 0.7% for all Brazilians
• Key changes include 100% CBS and 20% IBS tax returns on utility bills for low-income individuals, a maximum 0.25% tax rate for minerals, and a 30% tax reduction for domestic animal health plans
• Foreign tourists will receive tax refunds on products purchased in Brazil and carried in luggage
• The law maintains an 8.5% tax rate for Football Corporations (SAF)
• Exemptions for meats, fish, cheese, and salt were retained, while the tax on sugary drinks was reinstated
• Firearms and ammunition were excluded from the new selective tax, which will partially replace the IPI with lower rates
• The new cashback system will return taxes to low-income individuals, enhancing their financial support

Source: camara.leg.br

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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