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House caters to corporate lobbies in tax reform regulations

Good morning! Today, meat and guns favored in tax reform regulation process. Senate still stalling on AI regulations. Private sanitation is on the rise, but coverage is far from universal.

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House caters to corporate lobbies in tax reform regulations 

"It may not be the ideal tax reform, but it is the one that was possible," sighed House Speaker Arthur Lira
“It may not be the ideal 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 nuts and bolts of Brazil’s soon-to-be-created VAT system, the heart of the sweeping tax reform approved in December. Lawmakers ultimately caved to corporate lobbies, such as those representing big pharma, gun manufacturers, and meat companies.

What happened. At 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, thus making them exempt from the VAT. Prior to the move, they had a 60 percent discount on the standard rate.

  • Meanwhile, guns and ammunition were kept out of the list of products that will have to pay a “sin tax,” additional levies to goods and services that are harmful to human health or the environment — as is the case…

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