🔄 Drawback setback

Brazil's 2023 consumer tax reform is advancing through a lengthy implementation schedule that extends until 2033. The project’s ultimate goal is to replace federal, state and municipal levies with a dual VAT modeled on international best practices, simplifying the country’s notoriously fragmented system.

The main pillars of the reform are largely favorable to trade. By replacing five levies with a federal contribution (CBS) and a subnational tax (IBS) on goods and services, the overhaul will streamline a web of cumulative taxes that often generate credits exporters are entitled to but struggle to recover…

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