08/29/2024 – 21:42
The extraordinary secretary for tax reform at the Ministry of Finance, Bernard Appy, stated that the inclusion of exceptions in the tax reform brought complexity to the new system. Despite the differences in relation to the initial project, the structural gain continues to be significant, the executive stressed.
“When an exception is introduced, a difference in taxation is created and this makes the new system more complex. Despite this, the next tax model will be significantly simpler than the structure we have today,” said Appy during his participation in the CNN Talks event, during the panel “Brazil Post-Reforms: Paths to Development”.
GO Associados partner, economist and FGV professor Gesner Oliveira, on the other hand, stated during the panel that establishing an exemption in the rate charged on meats should have an impact of 0.28 percentage points on the future VAT (Value Added Tax) rate, according to a study led by him.
He argued that the government should consider the exception in the case of meat, given that future taxation on meat could have a significant impact on protein consumption by Brazil’s poorest classes.
On the subject, Appy assessed that there is a cost in placing exceptions in the new tax system. He cited, as an example, that the existing exceptions limited the potential application of the system. cashbackreducing the benefit that could serve lower-income populations.
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