In a historic session, the National Congress promulgated on Wednesday (20) the tax reform that replaces five consumption taxes and puts Brazil on the map of countries adopting a VAT (Value Added Tax) system.
The promulgation solidifies the approval of the first tax reform since the redemocratization, which will put an end to the current tax system created in the 1960s after about 35 years of discussion.
The ceremony was attended by President Lula (PT), Vice President Geraldo Alckmin (PSB), Finance Minister Fernando Haddad, as well as the Presidents of the Senate, Rodrigo Pacheco (PSD-MG), the Chamber, Arthur Lira (PP-AL), and the Supreme Federal Court (STF), Luís Roberto Barroso.
The session also marks the first step in a long journey towards the effective implementation of the new model, which will begin in 2026 and be completed in early 2033.
From now on, the Executive has up to 180 days to submit the complementary bills that will regulate the reform—one of Congress's priorities next year. According to the Ministry of Finance estimates, the base rate is set at 27.5%.