Taxation on consumption close to 30% and sectoral benefits make it difficult to reduce the burden
According to Estadão, expected CBS and IBS rates increase consumption taxes to around 30%, and sectoral benefits make any revision difficult.
BY THE X-TRADER NEWS NEWSROOM · REPORTING FROM ESTADÃO · 2 MIN
The burden on consumption can reach around 30% when the two tax rates of the new model are added, according to Estadão. CBS was estimated at 11.3% and IBS has a predicted rate of 18.7%. With this level, the question that dominates the debate is no longer whether taxation will change and becomes how much of it will be possible to reduce.
According to Estadão, columnist Maria Carolina Gontijo believes that reducing the load will be difficult. One of the obstacles is the political weight of the tax benefits granted to sectors during the approval of the tax reform. Reviewing them has a high political cost, which turns each exception into an additional obstacle for those who want to lower the rate.
The most obvious alternative would be to cut exceptions, but the newspaper points out that cuts to those with less impact would be insufficient to alleviate the tax rate. In practice, a relevant adjustment would have to achieve greater benefits, precisely the type of change that the newspaper itself describes as having a high political cost. Mathematics pushes the debate towards a difficult choice.
At stake is the final weight of a tax levied on the purchase of goods and services. For those who defend lower taxes and fiscal responsibility, the case is a test: the reform was born with high rates and exceptions that are difficult to undo, and it is up to the public debate to decide whether this bill will be revised.
What changes for the investor
For those who invest and operate, the topic requires monitoring, not immediate action. A burden on consumption of close to 30%, added to sectoral benefits that are expensive to review, maintains taxation as a structural variable for consumer companies and their margins. It is worth observing, in the next debates, whether the discussion on exceptions progresses or whether it remains restricted to small adjustments. This article does not provide a purchase or sale recommendation or price projections.
Automatically translated from Portuguese.
