Brazil has maintained a pro-crypto stance for a long time and has made various legislative changes keeping the same in view.
In a recent media interaction, the city administration of Curitiba suggested that a crypto tax payment proposal was put forward by the councilor Noemia Rocha. Curitiba is the capital of Parana and the eighth biggest city of Brazil and has an estimated population of around 1.9 million.
Rocha’s proposal was unanimously approved by the City Council at a meeting this week and is expected to be implemented by 2023. However, legal experts have suggested that many challenges could come in the administration and implementation of the plan.
The current legislation in the country makes it difficult for state-level organizations to hold funds or accept payments in anything other than the fiat Brazilian Real (BRL) but has been progressive about crypto. However, the council stated that it expects to overcome all legal challenges ahead of the expected implementation in 2023 and plans to allow all payments made to the city to be done in crypto.
Curitiba’s plan to allow crypto transactions comes after Rio de Janeiro’s announcement allowing citizens to pay a property tax called the IPTU (the urban building and land tax) in crypto. In late August, Mendoza, a city in Argentina, also started accepting tax payments in several stablecoins, followed by the capital Buenos Aires allowing taxes in crypto very recently.
The mayor of Rio de Janeiro also said that he wants 1% of the city’s treasury reserves to comprise crypto. The city’s crypto tax plan intends to allot crypto firms as independent contractors performing real-time crypto-to-fiat conversions. Thus, Rio will receive tax payments in fiat, irrespective of what citizens choose to pay it in.