arXiv subjects
Publications and source records attributed to Carlos Feitosa Luna.
The aim of this study is to estimate the implications for the reference rate and for the distribution of the tax burden among households from the consumption tax reform as outlined in the version of the Projeto de Lei Complementar (PLP) 68 approved by the Brazilian Chamber of Deputies in July 2024.
This paper analyzes the redistributive impacts of indirect taxation reforms in Brazil inspired by PEC 45/2019, particularly in the version that led to EC 132/2023. Comparisons are made between the current system and the simulated reforms, considering the distribution of the tax burden among families in different income classes, as well as the impact on poverty and inequality indicators. The simulations are conducted based on the combination of effective tax rates that apply to goods and services consumed by households, using nationally representative microdata from family budgets.
Taxes on goods and services account for about 45% of total tax revenue in Brazil. This tax collection results in a highly complex system, with several taxes, different tax bases, and a multiplicity of rates. Moreover, about 43% of taxes on goods fall on inputs. In this context, the effective tax rates can substantially differ from the legal rates. In this study we estimate the final incidence of indirect taxes in Brazil using the 2015 Brazilian input-output matrix and a method that incorporates the multisector effects of the taxation of inputs.