Tax reform and the green economy
Posted: Thu Feb 20, 2025 6:07 am
In general, standardization with global systems seeks to minimize the number of taxes and, therefore, make the Brazilian system simpler. In Denmark, for example, which receives 45% of its GDP from taxes, there are only 14 charges — similar to what happens in Spain, which collects 32% with only 13 taxes. With this, the tax reform in Brazil aims, in addition to simplifying taxation, to define the rates of some taxes and to pay attention to the financial volume collected by the federative entities.
The idea is that the reform can provide Brazil with cost reduction, greater legal certainty, increased job and income generation, greater attractiveness for investments in the country, as well as fostering competitiveness in the domestic and foreign markets — also favoring the business environment — and greater transparency.
The changes aim to intensify the growth of the Brazilian tunisia mobile database economy, since the current tax system can hinder economic and social activity in Brazil with high costs for the private sector, which, consequently, generates effects on competitiveness and compromises the application of resources.
Widely debated due to all the effects it could have on society, some sectors are analyzing tax reform from another point of view: sustainability. Given the current situation in the country — with increased deforestation, pollution and the constant threat of climate change — the concept of a green economy has been gaining more and more traction.
Considered by the United Nations Environment Programme (UNEP) as “an economy that results in improved human well-being and social equality, while reducing environmental risks and ecological scarcity”, the green economy is an alternative to the current dominant economic model, seeking economic growth in a more sustainable model, and acts fundamentally on three pillars: low carbon emissions, efficient use of resources and social inclusion.
However, its implementation requires the active participation of the State, since the government can use economic instruments to propagate the concept, such as fiscal policies that can penalize polluting organizations by increasing taxes or even offering subsidies to companies that operate with solid environmental policies. It is from this idea that the green tax reform emerged, a theme that refers to the construction of programs that create taxes and incentives to foster the transition to a low-carbon economy.
In addition to contributing to environmental preservation, green tax reform has direct impacts on the economy: a study carried out by WRI , together with Brazilian researchers, shows that the transition to a low-carbon economy could generate 15% more growth than expected by 2030, adding R$2.8 trillion to GDP in 10 years.
The idea is that the reform can provide Brazil with cost reduction, greater legal certainty, increased job and income generation, greater attractiveness for investments in the country, as well as fostering competitiveness in the domestic and foreign markets — also favoring the business environment — and greater transparency.
The changes aim to intensify the growth of the Brazilian tunisia mobile database economy, since the current tax system can hinder economic and social activity in Brazil with high costs for the private sector, which, consequently, generates effects on competitiveness and compromises the application of resources.
Widely debated due to all the effects it could have on society, some sectors are analyzing tax reform from another point of view: sustainability. Given the current situation in the country — with increased deforestation, pollution and the constant threat of climate change — the concept of a green economy has been gaining more and more traction.
Considered by the United Nations Environment Programme (UNEP) as “an economy that results in improved human well-being and social equality, while reducing environmental risks and ecological scarcity”, the green economy is an alternative to the current dominant economic model, seeking economic growth in a more sustainable model, and acts fundamentally on three pillars: low carbon emissions, efficient use of resources and social inclusion.
However, its implementation requires the active participation of the State, since the government can use economic instruments to propagate the concept, such as fiscal policies that can penalize polluting organizations by increasing taxes or even offering subsidies to companies that operate with solid environmental policies. It is from this idea that the green tax reform emerged, a theme that refers to the construction of programs that create taxes and incentives to foster the transition to a low-carbon economy.
In addition to contributing to environmental preservation, green tax reform has direct impacts on the economy: a study carried out by WRI , together with Brazilian researchers, shows that the transition to a low-carbon economy could generate 15% more growth than expected by 2030, adding R$2.8 trillion to GDP in 10 years.