Brazil’s recent reforms—starting with the 2019 Economic Freedom Act—reflect an ongoing push to boost investment and streamline regulation. The 2023 Tax Reform (Amendment 132/2023 and Law 214/2025) introduced a dual VAT system (IBS and CBS) and the IS tax, a federal levy on socially or environmentally harmful goods like alcohol, tobacco, and mining. With fixed and progressive rates tied to emissions or health risks, IS impacts pricing, compliance, and competitiveness. Export rules remain pending congressional review. Legal counsel is crucial as Brazil modernizes its tax landscape and strengthens its appeal to Felipe Pessoa global investors.
