Brazil’s tax reform bill: dual VAT, welfare exemptions, and a green tax

The Brazilian Report gained access to a report submitted by Senator Roberto Rocha, detailing plans to overhaul the country's tax system

tax reform senate brazil
Brazil’s Congress building. Photo: Diego Grandi/Shutterstock

Center-right Senator Roberto Rocha released his report this afternoon on the tax reform bill under discussion in Brazil’s Congress. Details of the legislation show the creation of a “dual” value-added tax system unifying federal and local levies into two different VATs. 

That the report was issued today was significant, as October 5 marks the 33rd anniversary of Brazil’s democratic Constitution — a landmark alluded to by senators.

The federal VAT — which would be known as the “contribution on goods and services,” or CBS in its Portuguese acronym — would replace federal social security taxes PIS and Cofins. The...

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