Federal Government presents tax reform proposal that eliminates PIS/COFINS and institutes CBS

On Tuesday, the Federal Government presented a tax reform proposal that eliminates contributions to the Social Integration Program (“PIS”) and Contribution for the Financing of Social Security (“COFINS”), and institutes the Contribution on Transactions with Goods and Services (“CBS”). The project, which, according to the economic team of the Ministry of Economy, will make it possible to create a “simpler, neutral and homogeneous” system, aims to boost productivity and economic growth, as well as reduce litigation and insecurity related to the concept of inputs capable of generating PIS/COFINS credits.

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