Business · Economy · 11 hrs ago
Roit CEO warns delaying Brazil tax reform could cost R$50 billion
Lucas Ribeiro, chief executive of Brazilian tax consultancy Roit, argues that Brazil should start its tax reform in January 2027 rather than delay it by a year.
He says postponement could leave R$50 billion with tax evaders, keep R$19 billion in PIS/Cofins credits tied up and suspend R$10 billion in tax refunds for low-income families in 2027.
The reform replaces existing taxes with a new system, but businesses and some groups say they need more time and government systems need further work.
Ribeiro agrees there are unresolved issues, including uncertainty over the CBS rate, gaps in the law and frequently changing technical guidance.
He argues that many problems will only be resolved once the system is operating, and that waiting could leave the same issues unresolved a year later.
Roit proposes safeguards for 2027, including no penalties for formal paperwork errors and 90 days to correct material errors without a fine.
It also proposes a working assisted tax calculation system, simpler reporting for sectors not yet ready and a government response to formal tax questions within seven business days.
Lucas Ribeiro, CEO of Roit, says delaying Brazil’s tax reform by a year would leave R$50 billion in the hands of tax evaders.
He also estimates that a delay would hold up R$19 billion in PIS/Cofins credits and suspend R$10 billion in tax refunds for low-income families in 2027.
Ribeiro says the reform’s implementation problems are real but argues they will only be resolved once the system is operating.
He proposes starting in January with minimum requirements, freezing technical notes in 2027 and easing penalties for errors.
Ribeiro says companies and government systems need more preparation, but argues the costs of postponement would be greater than its benefits.
- Who
- Lucas Ribeiro, CEO of Roit.
- What
- Ribeiro says postponing Brazil’s tax reform for a year could leave R$50 billion with tax evaders and delay credits and refunds.
- When
- The reform is scheduled to take effect in January; the article discusses a possible delay to 2028 and effects in 2027.
- Where
- Brazil.
- Why
- Ribeiro argues that delaying would forfeit a year of compliance gains, while implementation problems can be addressed once the system is operating.
Supporters of postponement
Lucas Ribeiro, CEO of Roit
Preparation and systems
Supporters of postponement
Some entities say companies need more time to prepare and government systems need more maturity.
Lucas Ribeiro, CEO of Roit
Ribeiro agrees these are real concerns but says the system’s difficulties will only be identified and resolved once it is operating.
Costs and benefits
Supporters of postponement
Some entities seek to postpone the change from current taxes to the new taxes.
Lucas Ribeiro, CEO of Roit
Ribeiro says postponement would cost more than it would gain, including R$50 billion in foregone compliance gains in 2027.
The reform is scheduled to begin taking effect.
Ribeiro says a one-year delay would leave R$50 billion in the hands of tax evaders and suspend R$10 billion in refunds for low-income families.
Ribeiro warns that delaying implementation until 2028 could leave the same problems unresolved.
- Estimated tax evasion
- R$50 billion
- PIS/Cofins credits
- R$19 billion
- Low-income family tax refunds
- R$10 billion in 2027
- Reform start
- January
- Roit CEO
- Lucas Ribeiro
What people are saying
Se postergar para 2028, fatalmente vamos repetir em novembro de 2027 os mesmos problemas.
Acredito que nunca estaremos prontos.
Tudo isso é verdadeiro. Agora, precisamos entender o que a gente ganha e o que a gente perde com o adiamento.
Nós temos muito mais a perder do que a ganhar.