Súper IVA Reform Proposal Introduced

A proposal called “Super VAT” aims to unify VAT, Gross Income Tax, and municipal levies into a single 9% federal tax with additional local taxes possible, inspired by Brazil’s VAT reforms.
The reform seeks to simplify tax compliance, reduce distortions, and increase efficiency by centralizing tax collection and redistributing funds to provinces through a revised co-participation system.
VAT currently accounts for a significant portion of tax revenue, with six national taxes contributing 83% of public income, highlighting the potential impact of consolidating taxes for efficiency.
Although not yet officially considered by the government, the proposal aligns with broader tax reform goals aiming to drastically reduce the number of existing taxes.
Supporters argue the model would ease business burdens and improve transparency, while critics cite challenges in political consensus and fiscal coordination across government levels.