dc.contributor.author	Vale, Ricardo
dc.contributor.author	Lara Ibarra, Gabriel
dc.contributor.author	Fleury, Eduardo
dc.contributor.author	Trzcinski, Kajetan
dc.date.accessioned	2023-10-31T14:08:18Z
dc.date.available	2023-10-31T14:08:18Z
dc.date.issued	2023-10-31
dc.description.abstract	A consumption tax reform in Brazil has been recently approved by the House of Representatives, providing a full tax exemption for the yet undefined ‘National Basic Basket’ of goods (cesta basica nacional), alongside a cashback scheme that is yet to be determined. This note simulates the distributional impacts of different fiscally neutral scenarios of reduced rates and exemptions. The authors show that the exemption of taxes for food and personal care goods (such as those suggested by Law 10,925) would benefit the most vulnerable. Nonetheless, overall expenditures on certain items that are being considered for inclusion in the cesta are relatively concentrated on households in the top decile of the income distribution. Thus, a blanket exemption on Cesta Basica items may benefit the richest more in absolute terms. If the list of items in the exempted Cesta Basica is shortened and the equivalent resources of the potential forgone revenues are returned into a targeted cashback scheme, a far less regressive indirect tax system could be achieved.	en
dc.identifier	http://documents.worldbank.org/curated/en/099101623102535733/P179603087614f090b1c80baff0071cd8d
dc.identifier.doi	10.1596/40552
dc.identifier.uri	https://openknowledge.worldbank.org/handle/10986/40552
dc.language	English
dc.language.iso	en
dc.publisher	World Bank, Washington, DC
dc.relation.ispartofseries	Poverty and Equity Notes; October 2023
dc.rights	CC BY-NC 3.0 IGO
dc.rights.holder	World Bank
dc.rights.uri	https://creativecommons.org/licenses/by-nc/3.0/igo
dc.subject	CONSUMPTION TAX REFORM
dc.subject	NATIONAL BASIC BASKET TAX
dc.subject	VAT REFORM
dc.subject	BASIC CONSUMPTION TAX EXEMPTION
dc.subject	TAXATION EQUITY
dc.title	Distributional Impacts of Brazil’s Tax Reform	en
dc.title.subtitle	scenarios regarding Cesta Básica exemption	en
dc.type	Brief
dspace.entity.type	Publication
okr.crossref.title	Distributional Impacts of Brazil’s Tax Reform: scenarios regarding Cesta Básica exemption
okr.date.disclosure	2023-10-16
okr.date.lastmodified	2023-10-16T00:00:00Z	en
okr.doctype	Report
okr.doctype	Publications & Research
okr.docurl	http://documents.worldbank.org/curated/en/099101623102535733/P179603087614f090b1c80baff0071cd8d
okr.guid	099101623102535733
okr.guid	099101623102515592
okr.identifier.docmid	P179603-87614f0d-7764-4629-b1c8-baff0071cd8d
okr.identifier.doi	http://dx.doi.org/10.1596/40552
okr.identifier.doi	https://doi.org/10.1596/40552
okr.identifier.externaldocumentum	34180896
okr.identifier.internaldocumentum	34180896
okr.identifier.report	185270
okr.import.id	2180
okr.imported	true	en
okr.language.supported	en
okr.pdfurl	http://documents.worldbank.org/curated/en/099101623102535733/pdf/P179603087614f090b1c80baff0071cd8d.pdf	en
okr.region.administrative	Latin America & Caribbean
okr.region.country	Brazil
okr.sector	Social Protection
okr.theme	Inclusive Growth,Job Creation,Gender,Human Development and Gender,Data Development and Capacity Building,Economic Policy,Social Protection,Social Development and Protection,Economic Growth and Planning,Institutional strengthening and capacity building,Private Sector Development,Labor Market Policy and Programs,Public Sector Management,Jobs,Social protection delivery systems,Labor Market Institutions
okr.topic	Law and Development::Tax Law
okr.topic	Macroeconomics and Economic Growth::Taxation & Subsidies
okr.topic	Governance::National Governance
okr.topic	Poverty Reduction::Equity and Development
okr.unit	EFI-LCR-POV-Poverty and Equity (ELCPV)

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Distributional Impacts of Brazil’s Tax Reform: scenarios regarding Cesta Básica exemption