On 11 September 2019, the representatives of all federal States submitted their comments on the tax reform proposal under the Bill for Amendment of the Constitution 45/2019 (PEC 45/2019).
This proposed amendment seeks to promote a comprehensive transformation of the Brazilian tax system. The goal is to replace an inefficient tax model with an efficient and cooperative system. According to PEC 45/2019, the changes suggested in the constitutional text refer to the proposed tax reform developed by the Center for Fiscal Citizenship (CCiF), an independent institution established to think about improvements in the Brazilian tax system based on the principles of simplicity, neutrality, equity and transparency. The representatives underlined changes in the transitional period of the tax reform, maintenance of the free economic zone facilities and the creation of a development fund. The draft law will be put to the vote at the Plenary of the Chamber of Deputies and Senate.
