Good morning! The Brazilian government unveils its proposal to give the tax reform teeth with a new VAT. Petrobras chooses its board. iFood plays ball. And the race for São Paulo.
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Government aims at 26.5 percent average VAT rate
Finance Minister Fernando Haddad and Tax Reform Secretary Bernard Appy presented congressional leaders with their proposal to regulate aspects not covered by the sweeping reform of the tax system approved by Congress in December.
State of play. The tax reform will radically change Brazil’s consumption tax system by consolidating five multi-tiered taxes into two VAT-like levies: one at the federal level (CBS) and one for states and municipalities (IBS). Currently, the state-level ICMS tax on goods and services is by far the main source of revenue for state governments.
- Moreover, the bill will change Brazil’s tax system from an origin-based sales tax to a destination-based sales tax, meaning that levies will be collected where buyers are or where products are headed, rather than where a business is headquartered.
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