Lawmakers in Brazil’s decrease home of Congress authorised on Tuesday a invoice that features rules wanted to implement a constitutional tax reform, following a Senate vote to approve the invoice.
The proposal will now head to President Luiz Inacio Lula da Silva for his signature.
The invoice units guidelines wanted to consolidate 5 current taxes right into a single consumption levy, also called a value-added tax (VAT), with separate federal and regional charges.
It additionally present particulars on a brand new tax on merchandise thought of dangerous to human well being or the setting, reminiscent of cigarettes and alcoholic drinks. Lawmakers within the decrease home added sweetened drinks again to the listing after the senators eliminated it.
Lawmaker Reginaldo Lopes, invoice rapporteur within the decrease home, mentioned the modifications authorised by the home will set the general consumption tax fee at 26.5%.
The eagerly anticipated tax reform was authorised by lawmakers final yr and is a central pillar of Lula’s plans to spice up productiveness and financial progress in Latin America’s largest economic system. Earlier governments have tried and did not implement a tax reform of their very own.
Lula’s authorities has additionally despatched to lawmakers a separate invoice, which nonetheless requires Senate approval, regulating how the VAT could be managed on the state degree.
This text was produced by Reuters information company. It has not been edited by World South World.
