‘Tax reform is necessary to adapt Brazil to the 21st century economy’, says expert

In an interview with Rádio Itatiaia, professor Eduardo Maneira spoke about Tax Reform and its relevance in adapting Brazil to the 21st century economy. The interview took place in the week in which the 24th National Law Conference was held in Belo Horizonte, in which Maneira was one of the speakers.

‘Tax reform is necessary to adapt Brazil to the 21st century economy’, says expert

Tax expert Eduardo Maneira states that the effects of changing the logic of tax collection should begin to be felt in 2027; he believes the text will be approved this year

By Guilherme Peixoto

03/12/2023

Campaign flag for candidates for national office since the country's redemocratization in the late 1980s, tax reform finally seems to be close to becoming a reality. For Eduardo Maneira, tax lawyer and associate professor of Tax Law at the Federal University Rio de Janeiro (UFRJ), the adoption of two Value Added Taxes (VAT) to replace five tariffs, in addition to simplifying the logic followed by taxpayers, will serve to expand connections between Brazil and the international economy.

“This tax reform is necessary to adapt Brazil to the 21st century economy. Our system was designed in the 1950s. The economy has changed a lot, especially the digital economy. Our current system no longer keeps up with the reality of the 21st century economy. This new model brings Brazil closer to the world — and brings Brazil closer to this new economy”, says Maneira, who also works as director of the Brazilian Association of Financial Law (ABDF) and tax coordinator at Escola Superior of National Advocacy (ESA), in an interview with Itatiaia.

Just like the Minister of Finance, Fernando Haddad (PT-SP), Maneira believes that this year the Chamber of Deputies will approve the text, which returned to the hands of federal deputies after the Senate approve the proposal in two rounds on the 8th.

“In general, indirectly, everyone will benefit from the implementation of this system, but it will not have a direct effect on the citizen’s pocket”, he adds.

One of the VATs created will fall under federal jurisdiction; the other will be managed by the states. The aggregate tax linked to the Union was called the Contribution on Goods and Services (CBS) and will combine the Social Integration Program (PIS), the Contribution for the Financing of Social Security (Cofins) and the Tax on Industrialized Products (IPI).

https://www.itatiaia.com.br/editorias/politica/2023/12/03/reforma-tributaria-e-necessaria-para-adequar-o-brasil-a-economia-do-seculo-21-diz-especialista