93 Tax reform is no longer just a proposal – it is now a reality shaping the planning of forward-looking companies. Brazil is introducing a new consumption tax regime based on VAT, with a reference rate that could exceed 28%. For the road implement sector – a vital cog in the national infrastructure and logistics chain – this goes beyond a mere change in tax guidelines. It reshapes the logic of price formation, influences investment planning, and redefines how costs and margins are distributed across the value chain. The key question is: where is your company currently focusing its attention? The study “Data Tax: X-ray of Companies’ Preparedness for Tax Reform,” a comprehensive nationwide survey conducted by the Tax Group, shows that the market is falling into a dangerous focus trap. ERP and systems adaptation is the only area where most companies have taken action. While businesses recognize the need to update their technology, they have yet to fully internalize the reform’s economic and commercial impacts. For implement manufacturers, focusing solely on software while neglecting business strategy is a costly mistake. The move your company needs to make now is clear: take tax reform out of the IT department and bring it to the commercial negotiation table. The illusion of preparedness And the risk to margins Manufacturing road implements involves managing a complex supply chain, intensive capital use, and long-term negotiations with carriers and fleet owners. Yet, according to the study, the figures for the domestic market are alarming: • Commercial myopia: 76.4% of companies have not recalculated their pricing tables for the new tax scenario; • Outdated contracts: 71.4% have yet to review their long-term agreements with clients and suppliers; • Supply chain at risk: 68.5% have not adjusted their purchasing and credit policies; • Cash flow exposure: 73.9% have not conducted any analysis of the new tax rate’s impact on working capital. This scenario points to a significant risk. Companies may enter the new regime with systems fully capable of issuing invoices correctly, yet still operate with distorted profit margins due to a lack of strategic recalibration at the point of sale. The current transition demands acknowledging its complexity. Between 2026 and 2033, companies will need to navigate both old and new rules, adapt systems, recalibrate purchasing policies, and renegotiate commercial terms. Raising the VAT rate to levels potentially exceeding 28% dramatically increases pressure on cash flow, especially for businesses with significant exposure to special regimes and current benefits. The Tax Group closely monitors this reality and understands the sector’s specific challenges. That is precisely why it developed Intelligent Tax Reform (RTI): to bridge the gap between technological compliance and commercial strategy. The work goes beyond system implementation. It also involves assessing how the new tax burden impacts final product pricing, recalibrating margins to preserve competitiveness, and structuring purchasing policies and contracts to ensure companies do not absorb inefficiencies across the supply chain. The time to act is not when the new tax rate comes into effect, but now, while the competition is still focused solely on updating software. The right move today guarantees leadership tomorrow. Act now Companies in the implement manufacturing sector should incorporate Tax Reform considerations into their commercial negotiations. By José Carlos Cardoso Antunes, member partner and Luis Wulff, CEO and founding partner of Tax Group
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