In an interview with JOTA PRO Tributos, our partner Pedro Bresciani commented on the challenges of tax neutrality in the implementation of tax reform. The article analyzes how Complementary Laws 214/2025 and 227/2026 brought different tax treatments for similar products and services, contrary to one of the fundamental principles of Constitutional Amendment 132/2023.

The Brazilian tax reform promised a more neutral system, based on Value Added Tax (VAT), which would not interfere in the economic decisions of private agents. However, the complementary laws created several lists of exemptions and tax rate reductions that end up generating competitive distortions between sectors. Cases such as the different treatment of animal and vegetable milk, exclusive benefits for sports clubs affiliated with federations, and selective reductions for cybersecurity illustrate these contradictions.

For Pedro, “the more the scope of differentiated regimes expands and the more conditions are created, the more the initial objective of a more general tax rate is lost.” He warns that, although the new model is more neutral than the previous system, complementary legislation has failed to fully maintain the objective of preventing taxes from impacting productive choices, which may result in a new wave of judicialization.