“Today will be remembered not only as a historic milestone, but also as a turning point, a watershed.
This is where we change Brazil’s trajectory. This day represents the beginning of a new country towards progress. It is an achievement of the National Congress, of the Brazilian people”, said the president of the Congress, senator Rodrigo Pacheco, quoted by Agência Brasil.
The president of Brazil, Luiz Inácio Lula da Silva, said on the social network X that he was happy with the approval of the tax reform “after years of a lot of construction”.
“After more than 30 years, we enacted the Tax Reform. Brazil is the winner (…) I’m happy because the economy is growing, inflation is falling and so is unemployment”, he highlighted.
The constitutional amendment abolishes four types of taxes, which will be merged with Value Added Tax (VAT).
It also eliminates other taxes at federal level to end tax competition and inequality between different States of the country, for which a regional development fund will be created, with the aim of financing projects in the poorest regions and which will have an initial budget of 60 billion reais (11 billion euros) from 2043.
The reform will mainly affect the basic food basket, medicines, fuel and internet services, although the changes will be introduced gradually.