The Federal Council of the Brazilian Bar Association (OAB) and its 27 state sections have issued a manifesto calling for the implementation of Brazil’s tax reform to be postponed until 2028. The reform is currently scheduled to begin next year.
The document, titled “OAB Manifesto for Legal Certainty in the Implementation of Tax Reform,” argues that the transition to the new system needs more time. It says the changes should be introduced with clear rules and adequate planning so businesses and the public can adapt without jeopardising economic stability.
Under the current timetable, the Contribution on Goods and Services (CBS) will replace the PIS and Cofins contributions from January 1, 2027. The Selective Tax is also due to be introduced.
The OAB warns that insufficient time to discuss the new rules could result in high and unfair rates. It also says a hurried transition could lead to conflicting interpretations and tax litigation, with possible effects on business competitiveness, employment and the prices of goods and services.
The association says it supports reforming the tax system, but argues that the transition must avoid legal uncertainty and unnecessary costs. The reform was approved in 2023 after decades of debate.
Last week, Brazil’s Federal Court of Accounts proposed setting the new CBS rate at 11.3%, a level several productive sectors considered excessive. The government has yet to issue a provisional measure setting the Selective Tax rate; the tax is expected to cover products including alcoholic drinks and cigarettes.
Sources: Folha Poder.