Brazil’s Massive Tax Changes Set to Roil Already Struggling Consumers

While officials say they’re streamlining the country’s notoriously complex tax system, some say a high VAT will hurt low-income households.

Illustration by The Epoch Times, Shutterstock, Getty Images

Complaints about Brazil’s confusing tax system have spanned decades and multiple administrations.

The latest reforms were approved in December 2023 after nearly five years of debate. They include a value-added tax (VAT) of up to 27.5 percent that will put Brazil alongside Hungary and Sweden as countries with the highest consumption tax rates in the world.