Finance Minister Fernando Haddad explained that his team will have to calculate the impact of the changes made by the Chamber of Deputies to the tax reform project, the fundamental text of which was approved on Friday, but he assessed that the standard rate of new Value added tax (VAT) must remain close to the previously estimated range.
The Treasury had calculated that the standard VAT rate – which will be defined later in the bill – would be between 25.9% and 27.5%, based on the amendments to the bill approved in the Senate.
“This is what it’s all about,” Haddad said in an interview with journalists in Sao Paulo, adding that the more “efficient” the transition process for VAT implementation is, in terms of judicialization and collection base, the more the more “adequate” the final rate will be.
The minister celebrated the approval in the Chamber of the fundamental text of the tax reform and also of the provisional measure regulating subsidies, but specified that the government’s path does not end with these initiatives and that new measures will be announced next year.
“I think it’s a really important day for Brazil,” Haddad said, noting that the country has been trying for four decades to advance tax reform.
The minister also reiterated the government’s intention to pursue the zero deficit target in 2024 and said the process will require “careful monitoring, month by month.”
Source: Terra
Rose James is a Gossipify movie and series reviewer known for her in-depth analysis and unique perspective on the latest releases. With a background in film studies, she provides engaging and informative reviews, and keeps readers up to date with industry trends and emerging talents.
