Last Wednesday (July 10), the Chamber of Deputies approved Complementary Bill No. 68/24 (“PLP 68/2024”), which regulates the Tax Reform. The bill will now be sent to the Federal Senate for analysis and voting.

The Tax Reform, as per the approved project, will change several aspects of the country's tax scenario, including the replacement of PIS, COFINS, ISS, ICMS and part of IPI by 3 taxes: IBS – Tax on Goods and Services, CBS – Social Contribution on Goods and Services, and IS – Selective Tax.

Another change worth highlighting is the possibility of cashback, that is, the refund of amounts paid as taxes to low-income consumers. There are also benefits such as presumed credit, reduction of the tax base and new immunities and exemptions for taxpayers.

Regarding red meat, a much-discussed topic in recent days, the product was approved to be included among the basic food basket and will have zero tax. Medicines, which are regulated by Anvisa and are not among those affected by the zero tax, had a discount of 60% on the standard rate approved by the Deputies.

Another highlight was the approval of the “lock” of 26.5% so that the single tax rate does not exceed this percentage.

We will closely monitor the developments of the bill's vote in the Federal Senate. Our team is available to answer any questions our clients may have about the impacts of the Tax Reform on consumption in their operations.