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With the Resumption of the Debate on Taxing Big Techs, Companies Like Meta and Apple May Face New Tax Regulations in Brazil
The government of President Luiz Inácio Lula da Silva will resume, this year, the drafting of a bill to tax large technology companies, the famous big techs. The proposal primarily targets Meta, Alphabet, Microsoft, Amazon, Apple, and Netflix, companies that concentrate most of the internet traffic.
According to the government, the revenue will be allocated to subsidize access to the internet for underserved populations.
The Minister of Communications, Juscelino Filho, announced the initiative during the Mobile World Congress (MWC) in Barcelona. “We see the size of our market and how much these companies earn in Brazil. It is only fair that they contribute in some way,” the minister declared.
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The idea is not new. Initially, the proposal was supposed to be sent to Congress last year. However, it was postponed due to “lack of space in the agenda,” according to Juscelino. Now, the issue has been resumed and will be treated as a priority by the government, as guaranteed by the Minister of Finance, Fernando Haddad.
It Will Be a Very Complex Issue
The minister admitted that the discussion will be complex, especially given the difficulties faced by the project that sought to regulate big techs and moderate content on social media. This topic has generated intense political clashes.
“It is not an easy or simple debate, considering the environment currently imposed within the National Congress,” stated Juscelino. However, he said he is in contact with parliamentarians and representatives of the companies themselves to build a more adjusted text.
The minister also stated that the political climate in Parliament is more favorable this year. According to him, the presidencies of the Chamber of Deputies and the Senate are aligned with the government. “We will be able to advance well this year,” he assessed.
Progress of the Project
If the project is sent to Congress, its progress is expected to occur amid a turbulent political context.
The majority of large American technology companies have close ties with the U.S. government led by Donald Trump. Meanwhile, the Minister of the Supreme Court (STF), Alexandre de Moraes, is facing a dispute with platforms like X, owned by Elon Musk, and Rumble, used by right-wing sectors for content dissemination.
In recent months, Moraes has ordered the removal of content and blocked accounts on these platforms, which has generated a reaction from the United States. In response, companies like Rumble and Trump Media have filed a lawsuit against Moraes, accusing him of violating American sovereignty.
Juscelino Filho acknowledged that these tensions affect the progress of the project to tax big techs but downplayed the impacts.
Another obstacle may be the stance of the United States government, which has already signaled possible retaliations against countries that adopt measures to tax American technology companies. However, Juscelino argued that Congress itself has been discussing the creation of sector-specific funds for the industry.
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