In an interview with Valor Econômico, our partner Ana Cláudia Utumi commented on tax reform and the VAT (Value Added Tax) ceiling.

According to the article, the report that Senator Eduardo Braga (MDB-AM) presented this week for Complementary Bill (PLP) 68/24 points to a rate of 28.1% as being necessary for states and municipalities not to lose revenue after the reform. At the same time, the senator maintained in his report a ceiling for the standard rate of the new Brazilian VAT of 26.5%.

As the ceiling will only be reached in 2032, it is possible that the rate needed by then will be different from the one proposed today, he noted. “The idea is not to increase the burden, but also not to lose revenue, so we can’t guarantee that 26.5% is the level for this,” said Ana.

Read the story: https://valor.globo.com/brasil/coluna/teto-da-tributaria-candidato-a-ser-furado.ghtml