The Brazilian tax system has evolved over time, influenced by historical, economic, and political factors. Since the colonial era and independence (1500s-1822) period in which Brazil was subject to Portuguese rules, taxes were levied on trade, mining, and agricultural products. After its independence from Portugal in 1822, Brazil continued to rely on trade-related taxes and customs duties, and throughout the 19th century and into the early 20th century, Brazil's tax system was characterized by regional disparities and heavy reliance on customs duties. The federal government and provinces imposed their own taxes, leading to complexity and inefficiencies. Brazilian government centralized tax administration and introduced new taxes to fund industrialization – excise tax (IPI) - and social programs becoming a significant source of revenue.