“Reform of Consumption Taxation in Brazil – A global view” in summary

Yesterday afternoon, Pinheiro Neto Advogados and Finncham Brazil, in support of the Consular Corps in Rio de Janeiro, welcomed as speakers Ana Luisa Varella, Vinicius Morani, Patrick Rajala (first time representing Finncham Brazil as the President of the Legal and Business Committee) and as moderators Sergio Chamone, president of Finncham Brazil, and João Rafael L. Gândara de Carvalho at the event “Reform of Consumption Taxation in Brazil – A global view”.

During the event, it was primarily discussed the importance of:

-Implementing a dual VAT model in Brazil to simplify taxation;
-Achieving true non-cumulative taxation for our consumption-related taxes;
-Having transparency regarding the tax burden in Brazil in order to reduce it;
-Establishing efficient, accessible, and business-friendly tax management by the government;
-Having financial and economic incentive mechanisms to develop different regions of the country.

The idea of the reform is to overhaul the system and bring it closer to more modern systems such the one in Finland. We want to make the system simpler and more transparent, so that everyone knows how much they are paying. The implementation of such a system is challenging in Brazil due to its complexity however not impossible.