Taxation
Brazil's 2027 VAT reform: revenue-neutral against which year?
Brazil's 2027 budget expects 19% more revenue from federal consumption taxes in the first year of a reform that promised not to raise taxes. The law measures neutrality against the 2012-2021 average, the increase falls mostly on service companies under the lucro presumido regime and in sectors kept at 3.65%, and prices take a one-time step up of 0.2% to 0.6%.