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