Happy Friday! Today, we discuss the decision by Congress to strike down Jair Bolsonaro’s vetoes on an infrastructure bill. Speaker kicks off the discussion about a semi-presidential system in Brazil. And electoral courts get into the fuel price debate.
Congress overrides veto on infrastructure bill
Lawmakers on Thursday struck down presidential vetoes on a bill aimed at stimulating seaborne transportation, reinstating a part that lifts federal taxes on imports of machinery, equipment, and spare parts by port operators. In January, President Jair Bolsonaro vetoed the tax break claiming it would be detrimental to the public purse.
- People close to discussions between the government and Congress, however, explain that the veto was more for show.
- The administration perceived slashing tax exemptions would help Brazil’s case to join the OECD, a club of rich countries where membership is seen as a stamp of best practices.
Why it matters. Associations of port companies say costs to import equipment could become 42 percent higher without the benefits.
Cabotage. Logistics experts say Brazil has an immense (and untapped) potential to develop cabotage transportation — that is, transport of goods by sea between two points within the same country. A study by the Federal Accounts Court...