Good morning! Today, we talk about some of the main points of tax reform contention. Brazil and Paraguay reach an agreement over Itaipu. And Paraguay’s push to link Argentinian gas fields to Brazil.
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What to pay attention to in tax reform regulations
Ricardo Alban, the chairman of the National Confederation of Industry, said this week that he fears the sweeping reform approved last year to simplify Brazil’s consumption tax system may be diluted, as Congress gets into the nuts and bolts of the new regulations.
Big picture. The tax reform will merge 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.
- But the reform is a broad framework, and now depends on specific regulations to be passed by way of supplementary legislation. The government has recently proposed its version of these rules.
👉 Why it matters. The post-reform regulations will...
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