In 2024, Brazil will see a range of tax changes including updates to the IPTU, new federal tax rules affecting offshores and exclusive funds, reoneration of diesel, biodiesel, and cooking gas with PIS and Cofins, and potential import tax on online purchases under $50. Companies will face changes in IRPJ and CSLL deductions for state subsidies and JCP rules. The Ministry of Finance proposed some changes to meet the deficit target. States will increase ICMS rates, and the tax reform allows IPVA on aircraft and watercraft and progressive ITCMD. Diesel and biodiesel will be subject to PIS and Cofins after a year-long exemption, and online purchases from foreign retailers may lose import tax exemption.

The Brazilian federal government is seeking an agreement with the Chamber of Deputies to advance a proposal that would end the Interest on Equity (JCP) mechanism, potentially generating up to R$ 10 billion in additional revenue. The JCP, created in 1995 as part of inflation control measures under the Plano Real, allows companies to treat it as an expense, reducing the taxable base for corporate income tax (IRPJ) and social contribution on net profits (CSLL). The Ministry of Finance argues that the JCP does not significantly affect corporate debt structure or investment levels. The proposal is part of a broader fiscal discussion, including measures expected to be approved as they are accounted for in the 2024 Budget Guidelines Law (LDO) project.

The Senate's Constitution and Justice Committee (CCJ) approved the tax reform proposal, PEC 45, after nearly six hours of discussion. The proposal, which introduces a dual Value Added Tax (IVA) system and aims to replace current taxes such as PIS, Cofins, IPI, ICMS, and ISS, will go to the Senate plenary for a vote. The reform includes provisions for reduced tax rates for certain sectors and products, a selective tax to discourage consumption of harmful goods, and mechanisms to benefit low-income populations and incentivize state and municipal revenue collection. The proposal, already passed in the Chamber, has been amended in the Senate and will require another Chamber review if modified in the Senate plenary.

The Brazilian Supreme Court is set to resume a nine-year-old case that could change the adjustment index of the Guarantee Fund for Length of Service (FGTS) accounts, potentially affecting 132 million account holders. The government, led by President Luiz Inácio Lula da Silva, seeks to delay the judgment to propose an agreement. The Solidariedade party filed the lawsuit in 2014, arguing for an inflationary index adjustment. A decision against the government could impact public finances by up to R$ 661 billion, according to Caixa Econômica Federal. The case has seen numerous delays and a partial agreement by Minister Luís Roberto Barroso, suggesting FGTS remuneration should not be lower than savings account yields, but only applicable from the judgment date forward. The government is considering an agreement that would adjust FGTS accounts by the savings rate starting in 2025, with full profit distribution or IPCA correction for 2023 and 2024.

The number of sectors benefiting from reduced tax rates continues to grow with each new version of the proposed constitutional amendment for tax reform in the Brazilian Senate. The latest report by Senator Eduardo Braga expands the list of areas with a 60% reduction in the standard rate from nine to thirteen. The reform introduces a dual Value Added Tax (VAT) system, replacing state and municipal taxes with a Goods and Services Tax (IBS) and a Contribution on Goods and Services (CBS). The report also includes measures to prevent an overall tax burden increase, specific sector exemptions, and the possibility of tax credits for certain activities. Criticism arises over the complexity and exceptions in the reform, which was initially intended to simplify the tax system. The reform could also benefit the Chinese company BYD, which plans to invest in electric vehicle production in Brazil.

Eduardo Braga, the rapporteur for tax reform in the Brazilian Senate, has included a provision in the proposed amendment to the Constitution (PEC 45/2019) to prevent an increase in the tax burden on consumption. The reform's central feature is the adoption of a dual Value Added Tax (VAT) system, replacing state and municipal taxes with a new tax on goods and services (IBS) and a federal tax (CBS). Braga's report suggests a reference ceiling for the new tax rates and proposes increased funding for the Regional Development Fund (FDR). Additionally, he has proposed two categories of basic food baskets with different tax treatments and removed selective taxes on products from the Manaus Free Zone. The report also includes a tax reduction for liberal professionals and specific tax regimes for certain sectors. The expectation is for the report to be voted on in the Senate's Constitution and Justice Committee (CCJ) on November 7, with the aim of concluding the plenary vote in November.

Economists advocate for the unification of social policy beneficiary registries to reduce federal government spending, citing inefficiencies due to decentralized databases. Gabriel Leal de Barros, former director of the Independent Fiscal Institution and partner at Ryo Asset, suggests revising eligibility criteria to prevent the accumulation of multiple benefits. He criticizes the political left for hindering the debate on this issue.

Nearly half of the amendments proposed by senators to the tax reform bill approved by the Chamber would raise the general rate of the new Value Added Tax (IVA) system. A study by the Pra Ser Justo movement, based on 310 amendments presented in the Senate, found that 46% of the proposals would increase the tax burden for most taxpayers by creating exceptions for certain sectors. The report, which was covered by major Brazilian newspapers, also indicated that 66% of the amendments could negatively affect the new tax system, while only 7% were seen as positive. The PEC's version approved by the Chamber suggests a reduced rate for sectors like health and education, among others, with the exact list of exceptions to be defined by infraconstitutional legislation. The study by the Ministry of Finance's Special Secretariat for Tax Reform suggested that the standard rate for the new consumption taxes should be between 25.45% and 27% to maintain the current average tax burden.

Brazil's Congress is set to decide whether to maintain or overturn President Luiz Inácio Lula da Silva's veto that could allow for creative accounting practices, enabling public spending to be underreported to meet fiscal targets. This method was used during Dilma Rousseff's administration to increase spending on the Growth Acceleration Program (PAC). The vetoed provision was part of the new fiscal framework law, which aimed to prevent such maneuvers. Economists and financial analysts express concerns about the potential return of creative accounting, which could undermine fiscal responsibility. The median market expectation is a primary deficit of 0.71% in 2024.

The Brazilian government, under President Luiz Inácio Lula da Silva, plans to propose a 2024 budget with an additional BRL 168 billion in revenue, contingent on Congress approving various measures. The goal is to eliminate the primary deficit next year. Measures include changing the tie-breaking vote in the Administrative Council of Tax Appeals (Carf) to favor the National Treasury, potentially generating BRL 54.7 billion, and regulating the taxation of IRPJ and CSLL on ICMS subsidies, which could yield BRL 37.3 billion. Other initiatives involve tax equity, new tax negotiation modalities, and the regulation of electronic sports betting. Despite market analysts' skepticism about achieving a neutral primary result in 2024, the government considers its extra revenue estimate conservative.

With a deadline approaching to present the 2024 budget proposal, the Brazilian federal government is relying on several uncertain measures to eliminate the primary deficit next year. Six proposals to increase revenue are pending approval by the National Congress, where they face varying degrees of resistance. The government needs an additional R$ 130 billion in revenue to achieve a neutral primary result in 2024. Economic analysts are skeptical about meeting the fiscal target, while the government projects a primary surplus from 2025. Minister Fernando Haddad's fiscal adjustment package faces challenges, especially after a crisis with the Chamber of Deputies' president, Arthur Lira. Measures include taxing offshore income, electronic sports betting, and closed investment funds, inspired by OECD and developed countries' models. The most advanced proposal is to restore the Treasury's casting vote in the Administrative Council of Tax Appeals (Carf) judgments.

The Brazilian Chamber of Deputies is set to vote on a bill extending payroll tax relief for 17 economic sectors until the end of 2027. The bill, already approved by the Senate, is a concern for the government due to its potential impact on revenue. The measure, proposed by Senator Efraim Filho and amended by Senator Ângelo Coronel, would benefit about 3,000 municipalities and reduce the federal government's revenue by approximately R$ 9 billion annually. The government, led by President Luiz Inácio Lula da Silva, is seeking new sources of revenue to meet primary result targets. Chamber President Arthur Lira confirmed the vote but mentioned there is no agreement on the tax relief for municipalities. The payroll tax relief policy was created during Dilma Rousseff's presidency and extended by Michel Temer and Jair Bolsonaro.

The Brazilian federal government, led by Fernando Haddad, is seeking to increase tax revenue by at least R$ 100 billion to achieve a neutral primary result for the 2024 budget, equivalent to nearly 1% of Brazil's GDP. This effort depends on the legislative approval of various measures. The government's fiscal framework, already passed by the Senate, aims to eliminate the primary deficit by 2024. Measures include reinstating federal taxation on gasoline and ethanol, creating a temporary tax on oil exports, and a debt renegotiation program. Analysts are skeptical about the government's ability to meet its fiscal targets, citing uncertainties and risks, including potential judicial challenges and the effectiveness of smaller tax changes.

Justice Minister Flávio Dino, in an interview with 'O Globo', stated he would not return to politics if chosen by President Luiz Inácio Lula da Silva for the Supreme Federal Court (STF). Dino is seen as the favorite to replace retiring minister Rosa Weber, a move some opponents believe could be a strategy for future presidential contention. Dino emphasized such a decision would be definitive, dismissing the idea of using the position for political gain. His potential nomination has caused discomfort among opposition politicians, Lula's allies, and jurists. However, Valdemar da Costa Neto, president of PL, indicated the party's bloc might vote in favor of Dino's nomination. Other candidates include AGU minister Jorge Messias and TCU president Bruno Dantas, the latter supported by Senate President Rodrigo Pacheco and CCJ President Davi Alcolumbre.

A suicide bombing at the Ministry of Interior in Ankara, Turkey, injured two police officers. The attack, the first in the city since 2016, occurred before President Recep Tayyip Erdogan was to speak at the parliament nearby. Erdogan called the attack 'the last attempt' to terrorize Turks. The attackers had stolen a vehicle in Kayseri, killing the driver. No group has claimed responsibility. The incident coincides with Turkey's discussions on ratifying Sweden's NATO membership, which Erdogan has linked to Swedish actions against Quran desecrations.

The Brazilian National Congress approved the 2024 Annual Budgetary Law just hours before the parliamentary recess, allocating a record R$ 53 billion for parliamentary amendments and R$ 4.9 billion for the electoral fund. The minimum wage was set at R$ 1,412, slightly below the executive's proposal. The electoral fund's increase, 428% higher than the government's suggestion, was made by Budget rapporteur Luiz Carlos Motta, with the justification that a similar amount was authorized in 2022. Senate President Rodrigo Pacheco expressed disagreement with the fund's amount. The Novo Party's attempt to reverse the authorization for R$ 4 billion for the electoral fund was rejected in the Chamber's plenary session. The final text maintains a primary result target of zero for 2024, with revenues and expenses estimated at R$ 5.5 trillion, and allows for a negative result of up to R$ 28.8 billion without considering it a breach of the target.

Researchers, including Matthew Lewin from the California Academy of Sciences and Stephen Samuel from Trinity College Dublin, have developed a nasal spray containing neostigmine as a new treatment for snakebites. This approach could be particularly useful for treating rapid onset paralysis caused by neurotoxins in snake venom. The spray has shown promising results in mice and is a cost-effective alternative to traditional antivenoms, which are often expensive and less effective due to various factors. The World Health Organisation has recognized snakebites as a neglected tropical condition, with the highest impact in south and south-east Asia and sub-Saharan Africa. The nasal spray could provide a quick and easy method to treat snakebites, potentially saving many lives, especially in remote rural areas where victims cannot reach hospitals in time. Clinical trials are planned in India to further test the efficacy of the nasal spray.