OECD gives a thumbs-up to Brazil’s VAT reboot
Brazil just scored a rare early A+ from the Organisation for Economic Co-operation and Development. A new paper praising the country’s switch to a dual value-added tax (VAT) model is “solid and balanced,” local advisers told International Tax Review. The OECD report highlights the ambitious institutional redesign underpinning the reform, which merges a spaghetti bowl of indirect levies into two streamlined federal-and-state VATs.
Why now? Lawmakers in Brasília are racing to make the system simpler, fairer, and friendlier to cross-border trade before Brazil’s 2026 presidential cycle kicks into gear. One adviser summed it up: the overhaul “finally points everyone in the same direction.”
The reaction was swift. Multinationals operating in Brazil cheered the prospect of fewer cascading taxes, while domestic suppliers worried about transition costs. Experts say the OECD endorsement bolsters investor confidence and could nudge Congress to pass the remaining implementation bills before year-end.
Around the Tax World
• Africa’s tax chiefs huddle in Algiers. The African Tax Administration Forum kicked off its 2025 annual meetings on 4 November, aiming to craft “efficient and targeted approaches to equitable tax systems,” AL24 News reports.
• Canada’s first Carney-era budget rewrites the rulebook. The Nov. 4 “Canada Strong: Budget 2025” drops fresh business and international tax measures, according to Law360.
• Nigerian chamber backs Tinubu’s tax revamp. Reforms will “eliminate multiple taxation” and boost transparency, the Abuja Chamber of Commerce & Industry told Vanguard.
• Steel titan Lakshmi Mittal plots exit amid tax overhaul. A Meyka report says sweeping tax reforms helped push the magnate out of his long-time post.
• Feeling the volatility. Veteran adviser Paulo Vieira da Rocha told International Tax Review that “the world of tax has never been more unpredictable,” pointing to a storm of digital and anti-avoidance rules.
By the Numbers
Double Vision: 2, the number of coordinated VATs in Brazil’s new dual VAT architecture, replacing a maze of overlapping indirect taxes.
Looking Ahead
All eyes are now on Brazil’s Congress, which is expected to debate the final enabling bills in December. Meanwhile, ATAF delegates will release their Algiers roadmap as the summit wraps on 7 November.