LatinNews Daily - 25 April 2024

*Brazil’s finance minister, Fernando Haddad, has submitted to congress the first set of proposed regulations to be added to the landmark tax reform approved last year. The tax reform legislation promulgated in December was a constitutional amendment (PEC) which streamlined the country’s convoluted system of consumption taxes into just two levies akin to value-added tax (VAT) – one federal tax (CBS) and another levied by state and municipal governments (IBS). The legislation submitted by Haddad yesterday is a ‘complementary law’ (PLP) which contains rules to determine taxable actions or transactions, locations in which the taxes will operate, the basis to calculate tax rates, how tax payments should be made, among other regulations for the CBS, IBS, and another federal consumption tax created last year known as the Imposto Seletivo (IS). The government is due to submit a second PLP which will set rules for the management and oversight of tax collection. The president of the lower chamber of congress, Arthur Lira, stated that he expects votes to be held on the PLPs before the congressional recess in July, while the senate president, Rodrigo Pacheco, said that his chamber should vote on them by the end of the year.