Brazil’s Eighth-largest City OKs Plan to Let Residents to Pay Taxes in Crypto
Brazilian cities are racing to allow their citizens the ability to pay their local taxes in crypto – with the nation’s eighth largest city set to allow residents to settle their bills in bitcoin (BTC) and other tokens from next year.
Per CNB, the latest development comes from the city of Curitiba, the capital of Paraná and the same state’s biggest city (population over 1.9 million). The media outlet reported that a crypto tax payment proposal was put forward by the councilor Noemia Rocha. The councilor’s proposal was “unanimously approved” by the City Council at a meeting this week – paving the way for implementation in 2023.
Legal experts noted that several administrative hurdles could well stand in the city’s way as it attempts to implement its plan. Brazilian legislation currently makes it difficult for state-level organizations to hold funds or accept payments in anything other than fiat BRL.
However, the council was quoted as stating that it believes it will be able to surmount legal hurdles ahead of a 2023 rollout. It also stated that it would allow “all payments” made to the city to be made in crypto.
More Brazilian Cities Set to Accept Tax Payments in Crypto?
Earlier this month, Rio de Janeiro unveiled its own plan to allow citizens to accept crypto to pay a property tax known as the IPTU (the Urban Building and Land Tax). The same city’s pro-crypto Mayor has previously stated that he wants crypto to make up 1% of its treasury reserves.
Rio’s own crypto tax pay program will see the city appoint crypto firms as independent contractors. These companies will perform real-time crypto-to-fiat conversions – meaning that Rio will receive tax payments in fiat, regardless of how citizens choose to pay.
Other Brazilian cities are also known to be keen to explore similar crypto-powered tax payment solutions as adoption continues to climb in Brazil.
In nearby Argentina, the city of Mendoza began accepting tax payments in a number of stablecoins in late August. More recently the capital Buenos Aires also signaled it was ready to let citizens pay taxes in crypto.