Yesterday (17/12), the Chamber of Deputies approved PLP 68/2024, the main bill regulating the Tax Reform. After amendments by the Federal Senate, the text was submitted once again for analysis by the deputies and approved in its final version. It now goes for presidential sanction.

The main changes include:

– Rate reductions: removal of sanitation, veterinary, mineral water, cookies and cookies from the 60% rate reduction regime; 

– Selective Tax: reinclusion of sugary drinks in the scope of the Selective Tax (IS) and re-establishment of criteria for the application of rates on vehicles;

– Tax substitution: withdrawal of the tax substitution regime provided for in the text approved by the Senate;

– Medicines: definition of medicines subject to a zero rate, with the others receiving a 60% reduction in the general rate;

This approval represents a milestone in the path of the long-awaited Consumer Tax Reform, promoting important advances in the simplification and modernization of the Brazilian tax system.