Brazil: Tax Expenditure Rationalization Within Broader Tax Reform

Author/Editor:

Maria Delgado Coelho

Publication Date:

September 24, 2021

Electronic Access:

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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

Frequency:

regular

English

Publication Date:

September 24, 2021

ISBN/ISSN:

9781513596624/1018-5941

Stock No:

WPIEA2021240

Pages:

46

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