8JUL-AUG 2025OPINIONIN MYPATH TO GROWTH: OPENING POINTS IN BRAZIL TAX REFORMBy Guilherme Iacovino, Tax Manager, Decolar BrasilIt's a belief that adequate tax reform must consider economic growth, job creation, greater competitiveness of companies, products, and services, increased investments, and a reduction in the disparity between the richest and poorest in relation to their power of purchase. Additionally, tax reform needs to stimulate entrepreneurship, foreign investment, and competition between companies, increase the country's participation in international trade, and reduce tax bureaucracy and tax evasion. On the other hand, the Brazilian state needs to be more efficient so that it can promote the reduction of the tax burden and, at the same time, provide society with public services of greater quality and scope.There are also several reasons why the tax reform contributes to accelerating the country's growth potential. Some important measures would result in an ideal model, as shown in the Tax Reform Booklet of the Ministry of Finance (2008), which highlights:· simplification and reduction of bureaucracy in the tax system, significantly reducing the number of taxes and the cost of complying with tax returns by companies;· increased formality, distributing the tax burden more equitably: those who pay taxes today will pay less, and those who do not comply with their tax obligations will start contributing;· elimination of distortions in the tax structure, reducing the cost of investments and exports;· elimination of the fiscal war, resulting in increased investments and economic efficiency;· important advances in the exemption policy, reducing the tax cost for formal companies for consumers and increasing the country's competitiveness;· the improvement of the regional development policy, introducing more efficient mechanisms for the development of the poorest regions.In this step, it is known tax reform in Brazil has been under discussion in Congress for over 30 years. The first time that an attempt was made was in the drafting of the 1988 Constitution, focusing on uniting the consumption taxes in one 'Value Added Tax.' The idea in that period was the same: try to reduce the judicial conflicts as well as the burdens on companies that operate in Brazil.On July 6th, the Chamber of Deputies passed a proposed amendment of the constitution (PEC) of Tax Reform that unifies five taxes on consumption, Social Contributions (PIS Guilherme Iacovino
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