💰 Gimme a (tax) break

Hello! Welcome to another edition of the Brazil Business newsletter! If you have any questions about this newsletter, or topics you’d like to see covered in future issues, you can reach us at [email protected] 

Brazil should put the brakes on its tax breaks

When Brazilian lawmakers approved the 2025 federal budget last month, much of the debate focused on congressional earmarks and public investment. Largely absent from the conversation were the more than BRL 500 billion (USD 87 billion) in tax breaks embedded in the country’s public accounts.

Together, federal and state tax waivers in Brazil amount to nearly 7% of gross domestic product, according to a study by the Brazilian Institute of Economics at the Getulio Vargas Foundation, a think tank. Of that, federal tax breaks account for around 4.5%, while exemptions at the state level contribute another 2%.

That share has been growing, due in part to rising generosity and improved transparency at the state level. However, the report also flagged a persistent lack of clarity surrounding many of these tax breaks, making them harder to track and assess.

Want to keep reading?