The current brazilian tax reform from the perspective of economic development

Overview & Synopsis

In Brazil, on December 20, 2023, the tax system underwent a relevant change with the promulgation of Constitutional Amendment no. 132. The changes focused, especially, on consumption taxation, which assigned rules regarding the replacement of taxes, the sharing of revenue, the transition to the new system and the management of the proposed model. In this research, a comparison will be made of the tax system prior to Constitutional Amendment no. 132/2023 and its changes within the context of the country's economic development, considering the tax system as a component of important economic implications that conjecture, at the same time, individual and social progress. To this end, the role of taxes in economic development is analyzed, whether in the sense of stimulating economic activities or as a materializer of rights. Tax is imperative so that the State can meet its public purpose and maintain the state machinery, as well as promote social well-being. Therefore, it is important to establish taxation that is efficient in terms of funding public expenses and equitable, fair and redistributive, as well as a system that offers better legal security that encourages economic activities and can promote a better development of the country. Keywords: Tax Reform. Taxation on consumption. Economic development. Efficiency. Equity.