Nélio B Weiss Philippe Jeffrey The presidential election is over and the President Lula's government will remain in power for the next four years for a second mandate. Important tax and social problems remain and will need to be quickly addressed by the government. Some of the main issues that have to be dealt with are; the anticipated reform of the 27 state VAT (ICMS) laws into one federal rule, to reduce the number of applicable ICMS rates from 44 to much fewer, and a reduction of the high tax burden. The task will be onerous, but change is needed to maintain the country as an important player in the worldwide economy and an attractive market for foreign investors.
December 01 2006