Tax Reform seeks to simplify and modernize the tax collection system in Brazil. Currently, the so-called "Brazil Cost" is considered one of the main obstacles to economic growth, representing approximately 22% of the national GDP. This reality affects the competitiveness of companies and makes products and services more expensive for the population.
The main objectives of the reform include:
Unification of taxes : taxes such as PIS, Cofins, IPI, ICMS and ISS will be replaced by a new Tax on Goods and Services (IBS), reducing the complexity of the system.
Fiscal transparency : facilitate understanding of the senegal mobile database incidence of taxes on prices.
Favorable business environment : reduce administrative costs and promote greater legal security for investors.
Tax equity : making the system fairer, with mechanisms such as differentiated rates for essential sectors and refunds of taxes paid to low-income families.
What was established in the Tax Reform regulations?
The regulations approved by the Chamber of Deputies detail the operational aspects of implementing the new tax rules. Key points include:
Unification of Taxes
Five current taxes (ICMS, ISS, IPI, PIS and Cofins) will be replaced by two new taxes:
Contribution on Goods and Services (CBS) : Federal tax that will unify PIS, Cofins and IPI.
Tax on Goods and Services (IBS) : State and municipal tax that will replace ICMS and ISS.
Selective Tax (IS)
An additional tax will be created on products considered harmful to health or the environment, such as cigarettes, alcoholic beverages and sugary drinks.
Standard rate and lock
The combined standard rate of CBS and IBS is estimated at 26.5%. A lock has been established to prevent the rate from exceeding this percentage; if this occurs, measures to reduce tax benefits will be implemented to maintain tax balance.
National basic food basket
Essential products, such as meat, milk, rice, beans, coffee, flour, sugar, pasta, French bread and cheese, will have a zero rate, aiming to reduce the tax impact on basic necessities.