March 10th, 2023


1. Federal government plans to vote on Tax Reform in the first half of 2023

The working group discussing the tax reform in the Chamber of Deputies continues to develop a new bill combining Constitutional Amendment Proposals (PEC) 45 and 110. According to people who participated in the meetings, the work is 90% done. The plan is that a bill will be submitted to Congress in May.

The reform is one of the priorities for the federal government. Vice President Geraldo Alckmin says that the reform is “ready to go” and that the liberal opposition will help with getting it through Congress. The administration aims to get the bill approved within the first half of the year.

According to Ministry of Finance Special Secretary Bernand Appy, the reform could potentially lead to a 12% growth in the Gross Domestic Product (GDP) over the next 15 years.

Appy also said that the new tax on the circulation of goods and services (IBS), which is included in the first stage of the reform, will only come into effect in 2025. Therefore, people won’t have to pay more taxes during the tax transition.

O Globo: Alckmin diz que reforma tributária está ‘madura’ e que oposição ‘vai ajudar’ a aprová-la
Veja: O plano de deputados para agilizar o caminho da reforma tributária
CNN: Reforma tributária tem potencial de aumentar PIB em 12% ou mais em 15 anos, diz Appy

2. Industry revenue dropped 0.9% in January compared to December

The industry sector’s revenue registered a drop in January for the fifth consecutive month, according to data from the National Confederation of Industry. The revenue dropped 0.9% in comparison to December, considering seasonally adjusted data.

Items that registered increases in January were number of hours worked in production (0.5%), employment (0.5%), and real salary (1.5%). The average performance of workers dropped 0.3%. Still, salaries have increased 6.6% since January 2022.

IstoÉ Dinheiro: Faturamento real da indústria cai 0,9% em janeiro ante dezembro, diz CNI
Valor Econômico: Emprego, massa salarial e horas trabalhadas da indústria crescem em janeiro

3. Central Bank Commodities Index drops 1.56% in February

According to a Central Bank report, the Commodities Index (IC) registered a 1.56% drop in February compared to January. The month before, the index had dropped 2.58% compared to December. In 12 months, the index dropped 7.62%.

The index is determined based on the global prices for agriculture, metal, and energy commodities, which are then converted to the Brazilian currency. The equivalent global rate, the Commodity Research Bureau (CRB), dropped 1.15% in February.

In the past 12 months, all three commodities subgroups have registered drops: agriculture (-0.61%), metal (-21.47%), and energy (-15.05%).

Valor: Índice de commodities do bc cai 1,56% em fevereiro
Infomoney: Índice de Commodities do BC cai 1,56% em fevereiro ante janeiro

4. Price of gasoline increases across Brazil following re-taxation

The price of gasoline in Brazil increased 3.3% thanks to the re-taxation of fuel, which came into effect last week. According to the National Agency of Petroleum, Natural Gas and Biofuels (ANP), the average price per liter of gasoline is R$ 5.25, a R$ 0.17 increase. This is the highest price registered since August 2022. The price of the diesel, which was reduced by Petrobras refineries, dropped 0.5%.

With the re-taxation and price cuts, the market expects a R$ 0.26 increase in the price of fuel per liter. However, the ANP might not have registered the full dimension of price changes, as the institution will only begin collecting data next week.

Folha de S.Paulo: Gasolina sobe R$ 0,17 em semana de volta dos impostos federais
G1: Preço do litro da gasolina sobe a R$ 5,25 nos postos, diz ANP

5. Federal government presents new bill on pay equality

The federal government submitted a new bill to the National Congress proposing greater penalties for companies paying lower salaries to women compared to men in the same position. The bill determines a fine equivalent to 10 times the highest salary paid at the company. Organizations with over 20 employees will also have to be transparent about salaries for men and women.

Currently, if there is proof of discrimination by gender or ethnicity the fine is 50% of the highest contribution paid to Social Security: R$ 3,753.75.

According to the Brazilian Institute of Geography and Statistics, the pay gap had been dropping until 2020. However, it increased again and reached 22% by the end of 2022. This means that a Brazilian woman makes, on average, 78% of what a man makes.

Estadão: Projeto de Lula obriga empresas com mais de 20 funcionários a divulgar salários de mulheres e homens
G1: Projeto da igualdade salarial: empresa que não cumprir será multada em 10 vezes o maior salário pago; entenda
UOL: Diferença salarial entre homens e mulheres vai a 22%, aponta IBGE