Tax reform in Brazil: analysis of constitutional foundations, structural changes and economic and social impacts

Abstract

Tax reform in Brazil represents one of the most significant transformations of the fiscal system in recent decades, aiming to simplify the tax structure, increase economic efficiency, and promote greater tax fairness. The Brazilian tax system, historically marked by complexity, cumulative taxation, and high tax burden, has been widely criticized by experts and economic agents. The recent approval of Constitutional Amendment No. 132/2023 introduced significant changes, such as the creation of new consumption taxes and the replacement of traditional taxes, aiming at simplification and transparency. This study aims to analyze the constitutional foundations of tax reform, its main structural changes, and its economic and social impacts. The research problem consists of understanding to what extent tax reform contributes to the efficiency of the fiscal system and the promotion of tax justice in Brazil. The hypothesis is that the reform represents a significant step toward simplifying the tax system, but still faces challenges related to its implementation and distributive effects. The methodology is based on bibliographic and documentary review, including analysis of legislation, doctrine, and recent economic studies. The results indicate that, although the reform has the potential to improve the economic environment and reduce distortions, its effectiveness will depend on regulation and implementation capacity by federal entities.