A mechanism for the partial refund of taxes paid on essential items will be implemented for families registered in the Single Registry, promoting greater tax justice.
Sectors with different tax rates
Some sectors will have reduced rates to minimize impacts:
Health and Education Services : 60% reduction in the tax rate.
Basic Sanitation : Initially included in the senegal mobile database reduced rate, but later removed from this category by the Chamber of Deputies.
Veterinary Health Services : Equivalent to human health, with a 60% reduction in the rate.
Gradual transition
The new tax system will come into effect in 2026, with an initial testing phase. Full implementation will take place progressively between 2027 and 2033, allowing companies and governments to adjust their processes over time.
These measures aim to simplify the Brazilian tax system, increase transparency and promote a more favorable business environment.
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What are the expected impacts?
The implementation of the Tax Reform has the potential to positively transform Brazil's economic scenario. Among the expected impacts are:
Business competitiveness : reduction of administrative and bureaucratic costs for companies, facilitating business expansion.
Stimulating growth : tax simplification can attract investment and generate jobs.
Tax justice : differentiated rates and the cashback mechanism promote greater equity in the system.
Sustainability : selective tax encourages the reduction of consumption of products that are harmful to health and the environment.
Despite the advances, challenges such as adapting business systems and training public managers are essential for successful implementation.
How did the deputies vote?
The approval of the Tax Reform regulations was marked by intense political negotiations. In the Chamber of Deputies, PLP 68/2024 was approved with 324 votes in favor, 123 against and three abstentions . During the discussions, differences between parties and regional interests highlighted the complexity of the agenda.