Brazilian Congress approves major tax reform


(MENAFN) In a significant political triumph for leftist President Luiz Inacio Lula da Silva, the Brazilian Congress approved a major tax reform on Friday, marking a pivotal moment for the largest Economy in Latin America. This reform represents the first overhaul of the country's consumption tax system since the era of military dictatorship.

The House of Representatives, in two separate votes, endorsed the proposed constitutional amendment with an impressive majority of 365 votes during the final round, surpassing the required threshold of 308 votes. This approval followed the second review of the text, incorporating amendments introduced by the Senate in November.

Following the decisive vote, Finance Minister Fernando Haddad underscored the reform's significance, stating, "It is the most important reform because it regulates the entire productive system." He went on to assert that this reform positions Brazil among the ranks of the most modern countries globally.

Congress President Arthur Lira hailed the day as a "historic day," emphasizing that the reform's primary objective is to "reduce bureaucracy and make tax calculations more transparent." The approval of this tax reform is expected to have far-reaching implications, streamlining the tax system, and fostering transparency, which aligns with the broader goals of President Lula da Silva's administration.

The sweeping nature of this reform underscores its transformative impact on Brazil's economic landscape, marking a departure from the longstanding tax structures in place since the military dictatorship. President Lula da Silva's successful navigation of this reform through Congress positions him favorably in the political landscape and sets the stage for potential economic advancements in the nation.

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