🇧🇷📈🚩💸 — With a rate of 26.5%, Brazil has the second-highest Value Added Tax (VAT) in the world; see ranking

➡️ The Chamber of Deputies took another step this week in the process of approving the Tax Reform, with the approval of the Complementary Bill (PLP) regulating the changes in the Brazilian tax system.

📝 Among the points approved by the deputies is a cap to ensure that the average rate of the Dual Value Added Tax (VAT), which will replace the five taxes levied on consumption in the country, does not exceed 26.5% starting from 2033.

💥 According to the approved text, if the rate exceeds the cap, the government will be required to draft, in conjunction with the IBS Management Committee, a complementary bill with measures to reduce the tax burden. With the limitation of the future tax, the government will lose revenue in the long term.

⚠️ The stipulation in the text will prevent the Brazilian VAT from being the highest in the world. According to data from the Organization for Economic Cooperation and Development (OECD), the global average VAT rate is approximately 15%, with regional averages ranging from around 12% in Asia to 20% in Europe.

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