Brazil’s Senate approved on Wednesday a tax reform that simplifies the country’s complex tax system, in place for more than three decades, and now must be voted on by the Chamber of Deputies.
A supermajority of senators gave the green light to the constitutional amendment, one of the priorities of President Luiz Inacio Lula da Silva’s economic program, with 53 votes in favor and 24 against.
The proposal combines various taxes levied by federal, state and municipal governments, which duplicate each other and increase the burden on companies and consumers.
One of the main changes is the introduction of a value added tax (VAT), similar to what already exists in 170 countries, which will be around 25%.
The bill exempts foods from the basic food basket from taxation and reduces taxes on education and health care, and also establishes a new tax on products harmful to health and the environment, such as tobacco, alcohol and pesticides.
The opposition, backing former President Jair Bolsonaro, voted against the reform on the grounds that it could lead to an increase in the tax burden – an argument rejected by the government.
Author: Lusa
Source: CM Jornal
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