Tax reform is back – but can it be passed in these turbulent times?

House Speaker Arthur Lira has committed to passing tax reform legislation. But the political scenario is too volatile to predict a positive outcome at this stage

tax reform congress
From left: Chief of Staff Luiz Eduardo Ramos, Speaker Arthur Lira, Economy Minister Paulo Guedes, and Senate President Rodrigo Pacheco. Photo: Luis Macedo/CD/ACS/CC BY 4.0

Amidst the political turbulence created by the pandemic — and the congressional hearings committee’s investigation into the government’s response to it —, one move of some consequence went under the radar. The Jair Bolsonaro administration reached a deal with House Speaker Arthur Lira to bring tax reform up the legislative agenda. Congress will deal with the reform in parts, starting with a simplification of the country’s Byzantine tax code, before it gets to the highly controversial issues that will prove more difficult to pass.

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