Brazil lawmakers propose reforms combining consumption taxes

FILE PHOTO: A man walks near the National Congress building, amid the coronavirus disease (COVID-19) outbreak, in Brasilia, Brazil, March 19, 2021. REUTERS/Ueslei Marcelino

BRASILIA (Reuters) - Brazil's consumption tax reform advanced on Tuesday as a working group in Congress outlined a proposal to combine various levies into a value-added tax with separate federal and regional rates without increasing the overall tax burden on the economy.

The report represents an early step in a reform considered crucial by President Luiz Inacio Lula da Silva's administration. Lawmakers will now craft a formal text in greater detail to be put to a vote.