Multinational corporations have for a long time complained that Brazil’s highly complex tax rules are costly to fulfill, full of uncertainties, and an obstacle to investing in the country.
However, now after years of planning and delays, the lower house of Congress has backed the landmark constitutional amendment that will simplify a lot of taxes on goods and services.
According to Guilherme Mello, secretary for economic policy at the Ministry of Finance, this is a huge step for Brazil. Something that will modernize the tax system, make it more competitive and facilitate more investments.
A spokesperson for the reform says it will boost economic growth, with a potential to add as much as 2.39 % to GDP over the next eight years
We needed a more simplified system, so that resources can be used to improve company productivity and make investments more attractive. (Buyside Consultancy)
Brazil needs a more balanced tax distribution system, and has now the possibility to get there.
Source: Financial Times
