The mayors of Rio and São Paulo criticize the current tax reform in Brazil and express their concern

Mayors Eduardo Paes of Rio de Janeiro and Ricardo Nunes of São Paulo voiced their criticism of the proposed tax reform in a manifesto presented at the House of Representatives.

The mayors, representing the National Front of Mayors (FNP), traveled to Brasilia to advocate for changes to the tax reform bill currently under consideration before the parliamentary recess.

Nunes raised concerns about the urgency of voting on a reform set to take effect in 2028 without proper consultation with mayors.

He referred to data from the Brazilian Central of the Services Sector (Cebrasse) to highlight the potential impacts of the reform on the sector.

Paes emphasized that the tax reform, which reduces the autonomy of municipalities in tax matters, represents a significant setback.

He criticized the lack of proper dialogue with mayors during the formulation of the proposal, stating that it reflects a return to an authoritarian and centralized model where everything is resolved in Brasilia.

The mayors announced a forthcoming national campaign that will be broadcast on radio and television to convey their position against the tax reform.

The House of Representatives has been making concentrated efforts since March 3 to approve the tax reform, restore the casting vote for the Administrative Council for Tax Appeals (Carf), and establish the Fiscal Framework.

However, due to resistance from various sectors, the votes have not progressed significantly at this time.

For the full picture, see our Brazil Tax Reform: Complete Guide.