Brazil studies wealth tax potential and judges propose new rules for tax precedent handling

A researcher from Brazil's Institute of Applied Economic Research presented a study indicating that a wealth tax could raise between 0.5% and 0.7% of the country's GDP with limited economic impact. The proposed model would tax large assets at rates of roughly 1% to 1.5%, exempting low‑value residential property. The analysis highlighted that Brazil’s tax system is heavily reliance on indirect taxes, making it regressive, and argued that the wealth tax debate is more political than revenue‑driven.

Separately, Brazil's National Council of Justice (CNJ) issued a recommendation urging courts to prioritize the modulation of tax precedent effects and to avoid the creation of numerous “child theses.” The guidance aims to reduce jurisprudential fragmentation, improve legal certainty, and curb prolonged tax litigation by encouraging joint handling of similar, but not identical, cases and giving priority to declaration appeals that request modulation.