Brazilian VAT Debates on Free Pet Care and Public Health

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Brazil is debating a bold idea: free veterinary care for pets. Within four clinics run by the São Paulo City Council, a broader conversation is taking shape about whether public health services could extend to animals. Could pet care ever be funded by the public purse, or should pet owners bear all clinic costs? Luis Alberto Calvo, head of the Collegiate Veterinary Organization (OCV), told El Periódico de España that a free pet healthcare system would be a welcome development, yet there is skepticism about its feasibility. He noted that Brazil has long pressed to lower or even remove VAT on veterinary services, arguing that animal health is a public concern rather than a luxury subject to taxation.

Social media amplified the discussion when Margaryta Yakovenko, a writer and journalist, sparked a heated exchange with a tweet. She suggested that in a country with more pets than children, it’s time to demand Public Veterinary Care now. Her post highlighted the potential cost of pet care, with one owner noting a vet visit costing 351 euros. Many readers pushed back, arguing that pet ownership is a personal choice and that taxes should not serve individual desires.

The debate is not straightforward. Calvo emphasized that much remains uncertain about any proposed public veterinary program. While acknowledging the potential benefits, he cautioned that such a system would require substantial public funding, and questions linger about how those funds would be sourced. The discussion reflects broader concerns about balancing public welfare with budget realities.

In the current tax landscape, the Collegiate Veterinary Organization points out that veterinary services for livestock carry a 10% VAT, while many other veterinary services aimed at pets are taxed at 21%. They argue for a reduction in VAT as part of a broader push to make essential animal care more affordable and accessible.

Orthopedics or Oncology

Another focal point is the plan to offer expanded free pet care in the São Paulo city clinics. The program would cover a wide range of services from ophthalmology to orthopedics, dentistry, and oncology. It would deploy a team of about 145 veterinarians supported by nearly a hundred assistants. The yearly budget for this plan is projected at 27 million reais, roughly 4.8 million euros or 5.3 million dollars, underscoring the scale of the initiative.

OCV reiterates that veterinary care should not be viewed as a luxury. When the Congress began examining the General Budget for 2023, several parties proposed reducing the VAT on veterinary services. Although these amendments did not pass, the discussion continued to echo in public forums.

Abandonment of Animals

The tax reform discussion traces back to a 2012 move increasing the tax burden on veterinary services. Supporters argued that given the health crisis, lowering the VAT rate on veterinary care would be timely. They warned that higher taxes could reduce visits to the vet and, in turn, raise the risk of pet abandonment.

Proponents argued that reform would support animal welfare and public health by reducing the incidence of zoonotic diseases that can affect humans. Fewer veterinary visits were linked to higher risks of conditions like rabies, scabies, tuberculosis, and hydatidosis, among others.

PACMA and VAT Discourse

PACMA has spent years advocating for VAT discounts on veterinary care, medicines, and related products. A report by the Spanish Veterinary Business Confederation (CEVE) suggested that implementing a discounted VAT at 10% rather than the standard 21% could generate significant revenue, depending on how it is applied. PACMA has continued to push for reductions across veterinary care and pharmaceuticals.

OCV emphasizes that animal health should not be treated as a whim. For instance, savings from VAT reductions could lower mandatory vaccination costs and influence the need for state-level civil liability insurance for dogs under welfare laws. The conversation remains centered on safeguarding both animal welfare and public health.

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