2023-12-21 17:21:00
In a historic session, the National Parliament enacted this Wednesday (20) the tax reform that replaces five taxes on consumption and places Brazil on the map of countries that adopt a VAT (Value Added Tax) system.
The promulgation consolidates the approval of the first tax reform since redemocratization, which will put an end to the current tax system created in the 1960s, after approximately 35 years of discussion.
The ceremony was attended by President Lula (PT), the Vice President of the Republic, Geraldo Alckmin (PSB), the Minister of Finance, Fernando Haddad, as well as the presidents of the Senate, Rodrigo Pacheco (PSD-MG), the Chamber, Arthur Lira (PP-AL), and from the STF (Supreme Federal Court), Luís Roberto Barroso.
The session also marks the first step in a long path towards the effective implementation of the new model, which will begin in 2026 and be completed in early 2033.
From now on, the Executive will have up to 180 days to send the complementary bills that will regulate the reform, one of Parliament’s priorities for next year. According to calculations by the Ministry of Finance, the base rate is estimated at 27.5%.
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