THE BRAZILIAN CONSUMPTION TAX REFORM: A COMPARATIVE ANALYSIS OF CANADA'S AND INDIA'S MODELS AND THE CHALLENGES OF CONSTITUTIONAL AMENDMENT NO. 132/2023
DOI:
https://doi.org/10.56238/revgeov17n3-074Keywords:
Tax Reform, Dual VAT, Fiscal Federalism, Comparative Law, Constitutional Amendment 132/2023Abstract
This research analyzes the adoption of the Dual Value-Added Tax (VAT) in Brazil, instituted by Constitutional Amendment No. 132/2023, from a comparative perspective with the Canadian and Indian models. The importance of the topic lies in the imperative urgency to overcome four decades of tax wars and hidden cascading effects, unlocking national economic growth through a system aligned with global best practices. Methodologically, the analysis adopts an exploratory and qualitative approach, grounded in a rigorous bibliographic and documentary review under the prism of comparative law and public finance. The investigation dissects Canadian pragmatic flexibility and Indian technological unification, projecting their achievements and failures onto the complex Brazilian reality. It concludes that the success of the national Dual VAT will depend inextricably on the peremptory rejection of the political fragmentation of tax rates, the effectiveness of the inter-federative Steering Committee in resolving disputes swiftly, the constitutional guarantee of robust compensatory funds, and innovation in algorithmic tax collection via Split Payment. Brazilian fiscal federalism thus emerges equipped with technology and cooperation to operate an unprecedented tax system, overcoming historical distortions.
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