0121 568 8793 [email protected]
Levy tax breaks

Brazil Reverses Years Of Tax Breaks

January 27 2015

Despite the weak economy in Brazil, the team behind the re-election of President Dilma Rousseff are reversing the temporary tax breaks created by former Minister Guido Mantega. However, investors should not be surprised by these changes as although government intend to replace some tax revenue, they were always intended to be temporary.

Joaquim Levy, Brazil’s latest finance Minister, announced four tax increases that he said would bring in an extra R$20.6 billion ($7.9 billion) in revenues this year despite a current account deficit of R$8 billion in November due to government spending on infrastructure and development to cope with the influx of tourists predicted for the World Cup (which was held in June last year) and the upcoming 2016 Olympic Games.

The four new hikes will erase tax breaks passed by Mantega in an effort to stimulate the economy and control inflation; an example of which will see gas prices rise by R$0.22 a litre (roughly $0.07). Levy said that should bring in R$14.07 billion to the federal government’s coffers.

Source Forbes

Share this:
Share this page via Email Share this page via Stumble Upon Share this page via Digg this Share this page via Facebook Share this page via Twitter

Chinese firm to build Steel Mill in Brazil under “Belt & Road” Initiative

A Chinese investment company intends to build an 8 million tonnes per year steel mill in Brazil for flat rolled steel under China’s “Belt & Road” initiative (BRI), its backers aim to commission the plant in 2025. The Beijing-based...

Read More

Stay up to date

Sign up to our monthly newsletter:

Email Address

By signing up to our newsletter you indicate your consent to receiving email marketing messages from us. If you do not want to receive such messages, tick here: 

You can opt out any time via the unsubscribe link at the bottom of our newsletter or click here