Evaluation of the Structure and Performance of the Brazilian Tax System: White Paper on Taxation in Brazil

This study performs an up-to-date diagnostic of the Brazilian tax system in order to provide a basis for reform discussions among technical analysts, authorities and congressmen. It is based on the analysis and categorization of information on taxation in Brazil. Its focus is on the current characterization of the tax system, rather than its evolution, within the limits of available statistics. Tax revenues, addressed in the first part of the study, are its principal focus. We sought to describe the current tax structure in a detailed manner, identifying every tax and contribution and grouping each tax by the level of government collecting it or using the funds after transfer. For the principal taxes (federal taxes and state VAT), we also classify them by type of collection and by sector of economic activity. In the second part, the study addresses the topics most discussed or cited in the tax debate, such as questions of competitiveness, equity, and division of resources among the different spheres of government. The objective of this study is to consolidate the literature on these subjects, with emphasis on a statistical survey of the available sources.