Tax Reform Raises Concerns Over Higher Costs and Consumer Prices

The implementation of the tax reform, with changes scheduled to begin next year, raises concerns about rising prices for the final consumer. Analyses from the National Confederation of Commerce and former Federal Revenue Secretary Marcos Cintra show that sectors such as services and retail will face a significantly higher tax burden under the new Contribution on Goods and Services.

The service sector, which currently pays 3.65% in PIS/Cofins, will move to a rate of 11.3% under the new model. Estimates suggest that the tax burden for this segment could rise by about 54%. Retail is also expected to suffer an impact, with projections of a 71.1% increase in the tax burden, while construction and the agricultural sector show smaller but still significant hikes.

Airlines are also expressing apprehension regarding the tax transition. The increase in operating costs, combined with pressure from variables such as fuel prices, creates a scenario of uncertainty for the financial planning of companies in the coming years.

The Federal Revenue Service is preparing to publish version 2.0 of the CBS and IBS regulations next week. The agency emphasizes that the transition follows the constitutional schedule and that the new system will allow for broad tax credits, a factor that the government claims must be considered in impact analyses on prices.

Experts warn that the difficulty of passing these additional costs on to prices may result in operational risks for companies. The debate over the effectiveness of assisted assessment and the need for adjustments in tax credit systems remains a central point of attention for the market.