The November 2023 tax reform bill is supposed to reduce the number of taxes from 5 to 2.
https://finance.yahoo.com/news/brazil-a … 14565.html
According to the article, the benefit of reducing the number of taxes is to simplify the tax collection system - which is a good attempt at streamlining.
Questions:
a) Will this not drive more businesses into the "hidden economy"?
b) Can the RFB implement this bill? In other words, is there enough existing transparency in the system (i.e. do we know and track all paid taxes at existing 5 levels) so that taxes consolidation can be successfully done at state and federal levels?
c) It's good that this harmonization will start taxing previously exempt goods such as luxury vehicles - but will this work?
d) Will the effective net taxes be lower? For investment to increase (and GDP to increase), net taxes should be lower. From the article, it appears that this is the goal but will this distribution of taxes over a larger tax base even be possible given the various powerful special interest groups?
I don't know any of the assumptions of the article, but I know the people on the ground feel the effects of taxation. What do you all think about this new tax reform bill?