Brazilian tax reform is widely seen as a step forward, but it still raises significant doubts among companies, especially regarding costs and operational complexity during the transition period.
This assessment was made by Marco Castro, CEO of PwC Brasil and Ecuador, in an interview with Broadcast’s Capital Insight program, in partnership with CNN Money. The executive highlighted the practical challenges faced by organizations at this time, but also stated that the measure deserves to be viewed with optimism.
“Tax reform is progress, I think everyone should look at it with a very positive eye,” said Castro.
However, he stressed that the long duration of the transition period requires companies to make immediate investments to prepare while still operating under the previous system. He explained that organizations are having to manage two tax systems in parallel, which represents a major operational challenge.
“This, in fact, is a necessity that companies are having to manage, as it is another one of these short-term issues that needs to be resolved,” he declared.
Castro also highlighted that the reforms implemented should not be seen as definitive. For him, it is crucial that they are periodically reviewed to ensure that they are aligned with current demands and needs.
“All the reforms we have seen in the past need to be revisited to ensure we are adjusting the changes to current needs,” he said.
Finally, the executive gave an overview of Brazil’s competitiveness on the global stage. Although the country has advanced in several areas in recent years, there is still room for improvement when compared to other territories competing for international investment.
“We need to accelerate these improvements and continue to constantly revisit these reforms,” he concluded.
