States and municipalities will be able to define a new tax rate

Among the main changes in the tax reform is the single tax rate for products and services, which will be divided between the Union, states and municipalities. Once this tax has been collected from the consumer, the amount collected will be divided among the three federative entities, based on a percentage that has yet to be defined. It is at this point that states and municipalities will gain more power than they had before the reform.

This will happen because the portions of each entity will be defined in the municipal chambers and state assemblies, seeking to respect the autonomy of each one, but also strengthening the weight of their decision. In this way, with the reform, each state or municipality will be able to decide the size of the portion it wants, making the tax increase or decrease for the consumer.