For Acembra, Congress’s decision on the funeral tax cannot ignore the financial impact on vulnerable families
The tax reform being discussed in Brazil aims to simplify the tax system, but it could have profound consequences for essential sectors, such as funerals. According to calculations by the (Association of Cemeteries and Crematories of Brazil), the current proposal will increase the sector’s tax burden from 8.65% to 19.88%, ignoring the crucial role that these services play in the public health cycle and in the dignity of Brazilian families.
The impact of the change goes beyond increased costs for companies and consumers. This directly affects the lower-income population, who may find themselves helpless in one of the most difficult moments in life: the loss of a loved one.
The funeral sector and public health
Often neglected in discussions, the funeral sector is a key part of the public health chain. More than providing burial or cremation services, it ensures that fundamental health care is applied when handling bodies, preventing the spread of diseases and environmental contamination.
This responsibility becomes even more evident in outbreak or epidemic scenarios, in which the sector acts as a containment barrier to avoid public health crises. Countries such as the United Kingdom, Canada and New Zealand have already recognized this essentiality, adopting exemptions or reduced rates for these services.
The impact of tax changes in Brazil
In Brazil, around 2022 died. Given this, the funeral sector needs to operate continuously, employing more than 250 thousand employees directly and moving a production chain that includes urns, flowers, burials and transport, according to data from the association.
The tax reform proposal, by disregarding the specificity of the sector, imposes a significant increase in taxes that will compromise the economic sustainability of companies and the population’s access to decent services. For classes C, D and E, which represent 85% of the adhesion to private funeral plans, according to Acembra, the increase in costs can make financial planning unfeasible and lead these families to resort to public services, which are already overloaded and lack resources. .
“With the expected tax increase, the average cost of a funeral package could increase by almost 20%. This is not just an economic problem. It’s a question of human dignity”, explained Cláudio Bentes, president of Acembra.
A question of fiscal and social balance
By seeking to equate funeral services with the special taxation regime provided for in the health tax reform – due to their essential nature –, the sector is not claiming a privilege, but rather tax justice. Just like hospitals and clinics, the funeral sector plays an indispensable role in preserving public health and guaranteeing dignity for Brazilian families.
Without this adjustment, the increase in the tax burden will have direct impacts on access to funeral services, overload municipalities with greater demand for public services and create obstacles for lower-income families to plan and bear essential costs.
The proposal to review the rate represents a viable solution to mitigate these problems and preserve the balance between revenue and accessibility. With the text in , it is time to evaluate how tax decisions can impact not only the economy, but also the practical life of the population in moments of vulnerability.
This content was produced and paid for by (Association of Cemeteries and Crematoriums of Brazil)/ Sincep (Union of Private Cemeteries and Crematoriums of Brazil). The information and data disclosed in this text are the sole responsibility of the author.
