The Chamber welcomed corporate lobbying in tax reform legislation

Jul 11, 2024 9:29 AM 7 minutes of reading (Updated: July 11, 2024 9:30 AM)

Good morning! Today, meat and guns are favored by the tax reform regulatory process. The Senate continues to stall on AI regulations. Private sanitation is growing, but coverage is far from universal.

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The Chamber welcomed corporate lobbying in tax reform legislation

"It may not be a perfect tax reform, but it is the only possible reform," sighed the Speaker of the House of Representatives Arthur Lira — “It may not be a perfect tax reform, but it is the one that was possible,” sighed House Speaker Arthur Lira. Photo: Wallace Martins/Thenews2/Folhapress

The lower house on Wednesday approved the foundations of Brazil’s soon-to-be-created VAT system, the heart of a sweeping tax reform approved in December. Lawmakers ultimately bowed to pressure from corporate lobbies, including those representing big pharmaceutical companies, arms manufacturers and meat companies.

What happened. In the 25th hour, the House approved an opposition amendment to include all types of animal protein in the basic basket of goods for low-income families, making them exempt from VAT. Before the move, they had a 60 percent discount on the standard rate.

Meanwhile, firearms and ammunition are not among the products that will be subject to a “sin tax,” an additional fee levied on goods and services that are harmful to human health or the environment — as is the case…