Tax reform could raise the rate above 30% and overcome Hungary's burden
Projections cited by Revista Oeste point to a standard rate above 30% with CBS and IBS, and a tax expert warns that simplifying is not reducing the burden.
BY THE X-TRADER NEWS NEWSROOM · REPORTING FROM REVISTA OESTE · 2 MIN
Tax reform was presented as a way to simplify the Brazilian system, but projections cited by Revista Oeste suggest a different outcome for the pockets of those who produce and consume. According to the publication, the sum of CBS and IBS can lead to a standard rate above 30%. The title of the report goes further and states that the total load could exceed that of Hungary.
The fundamental question is whether less complexity means less tax. According to Luís Garcia, a tax lawyer trained at USP, the answer is no: simplifying the system does not mean reducing the burden that the State imposes on productive activity. The distinction is often lost in public debate, but it is decisive for companies and investors.
A system with fewer rules and easier to comply with may remain burdensome if the final tax rate is high. For a newspaper that advocates fiscal responsibility and lower taxes, the central point is not the form of the tax, but rather the size of the slice that the government takes from the economy.
The numbers presented are projections, not definitive values. The final result will depend on how the rates are set, and the report treats the scenario as a possibility, not a certainty.
At stake are the competitiveness of Brazilian companies and the credibility of public accounts, two issues that weigh on prices, margins and investment decisions.
What changes for the investor
For those who follow the stock market, interest rates and the dollar, the main point is predictability. A burden on consumption and production that rises or remains uncertain can put pressure on the margins of companies in different sectors and change the way the market prices the country's fiscal risk, which is reflected in interest and exchange rates. This is a scenario of possibilities, not a price prediction. It is worth following the official definitions of the rates and evaluating the effect on a case-by-case basis, sector by sector, before making any decision.
Automatically translated from Portuguese.
