Brazil: Tax Expenditure Rationalization Within Broader Tax Reform
Electronic Access:
Free Download. Use the free Adobe Acrobat Reader to view this PDF file
Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
Summary:
The excessive complexity and burden of the Brazilian tax system, riddled by cumulative indirect taxes and heavy payroll contributions, have led to an accumulation of fiscal incentives aimed at reducing its burden on taxpayers and productive activities. Federal and subnational tax expenditures currently stand at over 5 percent of GDP. Rationalizing them can only be comprehensively feasible in the context of a broader sequenced tax reform, and could reduce resource misallocation and income inequality, as well as provide new revenues.
Series:
Working Paper No. 2021/240
Subject:
Corporate income tax Personal income tax Public financial management (PFM) Social security contributions Tax expenditures Tax incentives Taxes
Frequency:
regular
English
Publication Date:
September 24, 2021
ISBN/ISSN:
9781513596624/1018-5941
Stock No:
WPIEA2021240
Pages:
46
Please address any questions about this title to publications@imf.org