BSILIA, 20 December – The Brazilian Congress recently enacted amendments to the reform of the tax system, and Lula has officially signed the new tax bill. This major reform aims to simplify the tax system, reduce the burden on businesses and individuals, and promote economic development.
Highlights of the new tax bill include the creation of a Value Added Tax (IVA) to replace the existing tax categories. This means that the existing five taxes, namely the industrial product tax, the income tax, the social integration tax, and the goods and services circulation tax, will be combined into VAT, simplifying the tax process and reducing the operating costs of enterprises.
At the same time, the new tax bill also significantly reduces the tax rates on goods and services related to 13 industries. These include education, medical equipment, public transportation, agricultural products and other important areas related to people's livelihood. This will help reduce the cost of goods and services for consumers, promoting consumption and economic growth.
It is worth mentioning that the new tax bill imposes a zero tax rate on household consumption necessities. This means that families will no longer have to pay any taxes when purchasing daily necessities, further reducing the financial burden on families.
On the other hand, the new tax bill establishes a surcharge on goods and services that are harmful to health and the environment, such as alcohol, tobacco and ammunition. The initiative aims to guide consumers to a healthier, greener lifestyle while increasing revenue for the national treasury.
Brazil** plans to start a transition period to the new tax system starting in 2026 and fully implement the new tax system by 2033. This transition period will provide taxpayers with time to adjust to the new tax regime and ensure a smooth transition of the tax system.
The amendment to the tax system reform promulgated by the Brazilian Congress has received widespread attention and positive evaluation. Experts believe that the new tax bill will help simplify the tax process, reduce the operating costs of enterprises, and promote economic development. At the same time, the introduction of a zero tax rate and a surcharge on household consumption necessities will further reduce the financial burden on households and guide consumers to a healthier, more environmentally friendly lifestyle.
"This is the most important tax reform in Brazil's history," Lula said. We will reduce the burden on businesses and individuals by simplifying the tax system and inject new vitality into the economy. He also stressed the importance of tax system reform for the country's fiscal stability and economic development.
Photographer: Adriano Machado
The international community has also expressed concern and appreciation for Brazil's tax reform. Many countries believe that Brazil's tax system reform is a model for improving the country's fiscal efficiency and promoting economic development. At the same time, it demonstrates Brazil's determination and actions to promote economic reforms and promote sustainable development.
In conclusion, the amendments to the reform of the tax system enacted by the Brazilian Congress are a major change in the history of Brazil. Through measures such as the introduction of value-added tax, a significant reduction in tax rates, a zero tax rate for household consumption necessities, and a surcharge on goods and services such as alcohol, tobacco and ammunition, the new tax bill will inject new vitality into Brazil's economic development, reduce the burden on businesses and individuals, and guide consumers to a healthier and more environmentally friendly lifestyle. We look forward to the positive impact of this new tax system on Brazil's economic and social development in the future.