BRASILIA (Reuters) – Lawmakers in Brazil’s decrease home authorized on Wednesday the primary textual content of a invoice that might perform a significant tax overhaul, which goals to spice up productiveness by streamlining a tax system critics blame for burdening companies with extreme prices.
Lawmakers within the chamber are continuing to extra votes on amendments to the proposal.
The invoice, which nonetheless wants a vote within the Senate, contains rules wanted to implement a constitutional tax reform authorized final yr.
The overhaul would consolidate 5 present taxes right into a single consumption levy, also referred to as a value-added tax (VAT), that includes separate federal and regional charges. It will additionally introduce a tax on merchandise thought of dangerous to the atmosphere or human well being, like cigarettes and alcoholic drinks.
The listing of dangerous merchandise topic to the tax additionally contains playing video games and electrical automobiles (EVs), with some lawmakers citing the adverse environmental impression of discarding EV batteries.
Decrease home lawmakers tweaked the unique model of the invoice by limiting the general consumption tax to a most fee of 26.5%.
The federal government of President Luiz Inacio Lula da Silva initially despatched the implementing tax laws to Congress in April.
Whereas the authorized textual content didn’t add beef to a listing of important merchandise that might be eligible for a tax exemption, lawmakers later voted for an modification to supply it, consistent with latest feedback by the president endorsing the concept.
