Feb 27 • 11:00 UTC 🇧🇷 Brazil Folha (PT)

New taxation suffocates civil society organizations

The abrupt revocation of tax exemptions for Brazil's non-profit organizations under Complementary Law 224/2025 threatens the viability of many civil society organizations.

The article uses the metaphor from Gabriel García Márquez’s "Chronicle of a Death Foretold" to highlight the collective responsibility that society holds regarding the well-being of civil society organizations (CSOs) in Brazil. This comes in the context of a significant change in tax legislation that will negatively impact these organizations, which already face funding challenges. The abrupt revocation of tax exemptions reflects a broader trend of diminishing support for CSOs, raising concerns about their ongoing ability to operate effectively in their respective communities.

Law No. 224/2025, established on December 26, 2025, initiates a new chapter in the taxation of non-profit entities in Brazil by cutting tax benefits that were previously afforded to them. This legislation does not just impact individual organizations, but rather imposes a blanket reduction of incentives across all types of legal entities, which includes both profit-driven enterprises and nonprofit organizations alike. This indiscriminate approach removes critical financial support for CSOs that play essential roles in societal development, public health, education, and community engagement.

The intrinsic implications of this tax revision extend beyond mere financial constraints; it poses serious questions about the future resilience and capacity of civil society to engage and mobilize resources for social good. The drastic measures to revoke tax exemptions may lead to a decline in the number and effectiveness of CSOs, thereby risking their contributions to societal welfare. Without collective action and responsibility from society and governing bodies, there is a risk that the invaluable services offered by these organizations could be extinguished, analogous to the tragic fate of Santiago Nasar that Márquez portrayed in his novel.

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