[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"doc-detail-216834-en":3,"doc-seo-216834-105":30,"detail-sidebar-cat-0-en-105":91},{"code":4,"msg":5,"data":6},0,"success",{"doc_id":7,"user_id":8,"nickname":9,"user_avatar":10,"doc_module":4,"category_id":11,"category_name":12,"doc_title":13,"doc_description":14,"doc_content":15,"file_id":16,"file_url":17,"file_type":18,"file_size":19,"view_count":4,"is_deleted":4,"is_public":20,"is_downloadable":20,"audit_status":20,"page_count":21,"language":22,"language_code":23,"site_id":24,"html_lang":23,"table_of_contents":25,"faqs":26,"seo_title":27,"seo_description":14,"update_tm":28,"read_time":29},216834,3985741905716,"Kyle","https://ap-avatar.wpscdn.com/davatar_994ba38a5ba835b3df7d355c54d3ed8d",8,"Research & Report","Can Tax Reforms Shape Food Consumption? - An Investigation of the Impact of the Brazilian VAT - Working Paper Series 2024-17","Brazil’s complex tax system reduces productivity and discourages investment, creating a strong rationale for tax reform. The Brazilian Tax Reform approved in December 2023 establishes a VAT structure with a federal VAT (CBS), a local VAT (IBS), and a selective tax (IS) targeting products with negative health and environmental externalities. Using Household Budget Survey data (POF 2017–2018), the study evaluates reform scenarios and finds large shifts in consumption toward healthier foods while reducing ultra-processed food demand. Results balance revenue effects with household affordability concerns.","Department of Economics-FEA/USP  \nCan Tax Reforms Shape Food Consumption? An Investigation of the Impact of the Brazilian VAT  \nPAULA CARVALHO PEREDA TAINÁ PORTELAPATRÍCIA RAVAIOLI  \nWORKING PAPER SERIES  \nNº  \n2024-17  \nDEPARTMENT OF ECONOMICS, FEA-USP  \nWORKING PAPER Nº 2024-17  \nCan Tax Reforms Shape Food Consumption? An Investigation of the Impact of the Brazilian VAT  \nPaula C. Pereda ([pereda@usp.br](pereda@usp.br))  \nTainá Portela ([taina.portela.silva@usp.br](taina.portela.silva@usp.br))  \nPatrícia Ravaioli ([pf.ravaioli@usp.br](pf.ravaioli@usp.br))  \nAbstract:  \nThe need for a tax reform in Brazil stems from the country's complex tax system, which has contributed to decreased productivity and hindered investments. The Brazilian Tax Reform, approved in December 2023, introduces a Value-Added Tax (VAT) system comprising a federal VAT (CBS), a local VAT (IBS), anda selective tax (IS) on products with negative health and environmental externalities. This study explores the potential impacts of various scenarios of the reform on consumption, using data from the latest Household Budget Survey (POF 2017-2018). Our findings indicate that a broader tax reform (in terms of food basket exemptions and selective taxes on ultraprocessed products) could result in a decrease in 8.80% of government tax collection on consumption. However, consumption patterns would shift significantly, with a sharp increase in healthy food consumption and decrease in ultra-processed food. The scenario considering the newest tax rate proposal, which is more conservative in terms of exemptions and includes a selective tax only on one type of ultra-processed product (sweetened drinks), suggests an increase in government revenue but highlights reductions in the consumption of both in natura and ultraprocessed products. These results underscore the reform's potential to influence consumption patterns and highlight the balance between generating tax revenue and ensuring the affordability of essential goods. In this sense, there is room for improvement in the newest tax proposal to achieve a more nutritional balance within Brazilian households.  \nKeywords: tax reform, ultraprocessed foods, impacts on consumption  \nJEL Codes: H51, I18, R28  \nCan Tax Reforms Shape Food Consumption? An Investigation of the Impact of the Brazilian VAT  \nPaula Pereda, Tainá Portela, Patrícia Ravaioli  \nAbstract  \nThe need for tax reform in Brazil stems from the country's complex tax system, which has contributed to decreased productivity and hindered investments. The Brazilian Tax Reform, approved in December 2023, introduces a value-added tax (VAT) system comprising a federal VAT (CBS), a local VAT (IBS), and a selective tax (IS) on products with negative health and environmental externalities. This study explores the potential impacts of reform scenarios on food consumption, using data from the latest Household Budget Survey (POF 2017-2018) . Our findings indicate that broader tax reform (in terms of food basket exemptions and selective taxes on ultraprocessed products) could result in a decrease of 8.80% in government tax collection on consumption. However, consumption patterns would shift significantly, with a sharp increase in healthy food consumption and decrease in ultra-processed food consumption. A scenario based on the newest tax rate proposal, which would be more conservative in terms of exemptions and takes into consideration the selective tax only on one type of ultra-processed product (i.e., sweetened drinks), suggests there would be an increase in overall government revenue but highlights reductions in the consumption of both in natura and ultra-processed product. These results underscore the potential of the reform to influence consumption patterns and highlight the balance between generating tax revenue and ensuring the affordability of essential goods. In this sense, there is room for improvement in the newest tax proposal to achieve a more nutritional balance wi","cbCaimdmKeGDlgjk","https://ap.wps.com/l/cbCaimdmKeGDlgjk","pdf",1041272,1,34,"English","en",105,"# 1. Introduction","[{\"question\":\"What tax reform is analyzed in this working paper?\",\"answer\":\"The paper studies the Brazilian Tax Reform approved in December 2023, which introduces a VAT system with federal (CBS), local (IBS), and a selective tax (IS) on products with negative health and environmental externalities.\"},{\"question\":\"What data source is used to assess the consumption impacts?\",\"answer\":\"The analysis uses data from the latest Household Budget Survey (POF 2017–2018) to simulate how different reform scenarios could affect consumption patterns.\"},{\"question\":\"What changes in consumption does the paper find under broader reform scenarios?\",\"answer\":\"Broader reform scenarios, including food basket exemptions and selective taxes on ultraprocessed products, are associated with a decrease in government tax collection on consumption and with significant shifts toward higher healthy food consumption and lower ultra-processed food consumption.\"}]","Can Tax Reforms Shape Food Consumption? - An Investigation of the Impact of the Brazilian VAT - Working Paper Series 2024-17 | PDF",1788827919,86,{"code":4,"msg":31,"data":32},"ok",{"site_id":24,"language":23,"slug":33,"title":13,"keywords":34,"description":14,"schema_data":35,"social_meta":86,"head_meta":88,"extra_data":90,"updated_unix":28},"can-tax-reforms-shape-food-consumption-an-investigation-of-the-impact-of-the-brazilian-vat-working-paper-series-2024-17","",{"@graph":36,"@context":85},[37,54,68],{"@type":38,"itemListElement":39},"BreadcrumbList",[40,44,48,51],{"item":41,"name":42,"@type":43,"position":20},"https://docshare.wps.com","Home","ListItem",{"item":45,"name":46,"@type":43,"position":47},"https://docshare.wps.com/document/","Document",2,{"item":49,"name":12,"@type":43,"position":50},"https://docshare.wps.com/document/research-report/",3,{"item":52,"name":13,"@type":43,"position":53},"https://docshare.wps.com/document/can-tax-reforms-shape-food-consumption-an-investigation-of-the-impact-of-the-brazilian-vat-working-paper-series-2024-17/216834/",4,{"url":52,"name":13,"@type":55,"author":56,"headline":13,"publisher":58,"fileFormat":61,"inLanguage":23,"description":14,"dateModified":62,"datePublished":62,"encodingFormat":61,"isAccessibleForFree":63,"interactionStatistic":64},"DigitalDocument",{"name":9,"@type":57},"Person",{"url":41,"name":59,"@type":60},"DocShare","Organization","application/pdf","2026-09-08",true,{"@type":65,"interactionType":66,"userInteractionCount":4},"InteractionCounter",{"@type":67},"ViewAction",{"@type":69,"mainEntity":70},"FAQPage",[71,77,81],{"name":72,"@type":73,"acceptedAnswer":74},"What tax reform is analyzed in this working paper?","Question",{"text":75,"@type":76},"The paper studies the Brazilian Tax Reform approved in December 2023, which introduces a VAT system with federal (CBS), local (IBS), and a selective tax (IS) on products with negative health and environmental externalities.","Answer",{"name":78,"@type":73,"acceptedAnswer":79},"What data source is used to assess the consumption impacts?",{"text":80,"@type":76},"The analysis uses data from the latest Household Budget Survey (POF 2017–2018) to simulate how different reform scenarios could affect consumption patterns.",{"name":82,"@type":73,"acceptedAnswer":83},"What changes in consumption does the paper find under broader reform scenarios?",{"text":84,"@type":76},"Broader reform scenarios, including food basket exemptions and selective taxes on ultraprocessed products, are associated with a decrease in government tax collection on consumption and with significant shifts toward higher healthy food consumption and lower ultra-processed food consumption.","https://schema.org",{"og:url":52,"og:type":87,"og:title":13,"og:site_name":59,"og:description":14},"article",{"robots":89,"canonical":52},"index,follow",{"doc_id":7,"site_id":24},{"code":4,"msg":5,"data":92},[93,97,101,105,110,115,120,123,128,131,135],{"id":20,"doc_module":4,"doc_module_name":46,"category_name":94,"show_sort_weight":95,"slug":96},"Story & Novel",90,"story-novel",{"id":47,"doc_module":4,"doc_module_name":46,"category_name":98,"show_sort_weight":99,"slug":100},"Literature",80,"literature",{"id":53,"doc_module":4,"doc_module_name":46,"category_name":102,"show_sort_weight":103,"slug":104},"Exam",70,"exam",{"id":106,"doc_module":4,"doc_module_name":46,"category_name":107,"show_sort_weight":108,"slug":109},5,"Comic",60,"comic",{"id":111,"doc_module":4,"doc_module_name":46,"category_name":112,"show_sort_weight":113,"slug":114},6,"Technology",50,"technology",{"id":116,"doc_module":4,"doc_module_name":46,"category_name":117,"show_sort_weight":118,"slug":119},7,"Healthcare",40,"healthcare",{"id":11,"doc_module":4,"doc_module_name":46,"category_name":12,"show_sort_weight":121,"slug":122},30,"research-report",{"id":124,"doc_module":4,"doc_module_name":46,"category_name":125,"show_sort_weight":126,"slug":127},9,"Religion & Spirituality",20,"religion-spirituality",{"id":126,"doc_module":4,"doc_module_name":46,"category_name":129,"show_sort_weight":126,"slug":130},"World Cup","world-cup",{"id":132,"doc_module":4,"doc_module_name":46,"category_name":133,"show_sort_weight":132,"slug":134},10,"Lifestyle","lifestyle",{"id":136,"doc_module":4,"doc_module_name":46,"category_name":137,"show_sort_weight":106,"slug":138},19,"General","general"]