Haddad Makes Brazil’s Tax Reform a São Paulo Campaign Fight
Haddad used a radio interview in Ourinhos to make Brazil's tax reform a campaign issue. His targets were Flávio Bolsonaro and Tarcísio de Freitas. The post Haddad Makes Brazil’s Tax Reform a São Paulo Campaign Fight appeared first on The Rio Times .
The São Paulo gubernatorial race has transformed Brazil's tax reform into a campaign battleground focused on jobs and timing. Fernando Haddad, the Workers' Party candidate, expressed indignation on August 26th that opposition leader Flávio Bolsonaro, the presidential candidate of the Liberal Party, is against the reform. Haddad also criticized São Paulo Governor Tarcísio de Freitas for not addressing the issue.
Haddad argued the reform ends the fiscal war between states, preventing factory jobs from flowing between them. He warned that delaying the reform could cost São Paulo jobs for another decade. Bolsonaro, a senator from Rio de Janeiro and candidate for president, opposes the reform, voting against amendments in November 2023 and September 2025.
He has promised to suspend the reform for a year. Tarcísio de Freitas, the incumbent São Paulo governor, supported the reform in July 2023, agreeing with 95% of it. However, he defended his state's tax incentives in August 2026, stating that tax expenditure had fallen from 35% to 30% of net current revenue. Brazil's tax reform, enacted through Emenda Constitucional 132, replaces various consumption taxes with a dual value-added tax.
The reform went into effect in 2027, with collection of the new taxes beginning in the following year.
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