Brazil’s Chamber of Deputies approved the main text of tax reform that will restructure consumption taxes, a move President Luiz Inacio Lula da Silva called a “great victory.”
lawmakers voted in two rounds to approve the reform, and the bill will now be sent to the Senate, where it will also be voted on in two rounds.
“A historic moment and great victory, Brazil will have the first tax reform of the democratic period,” Brazilian President Luiz Inacio Lula da Silva wrote on Twitter after the vote.
The change, which is expected to benefit Brazil’s wealthier and more populous states, is likely to face stronger opposition and calls for broader compensation measures in the Senate, where state governors wield more influence.
Markets reacted positively to the House approval, with Brazil’s real strengthening by more than 1% against the US dollar.
