São Paulo industries ask for tax breaks

São Paulo industries ask for tax breaks
Photo: Alf Ribeiro/Shutterstock

The Federation of Industries of the State of São Paulo (Fiesp) asked Economy Minister Paulo Guedes for an exemption from financial transactions tax (IOF) until December 31, 2021. Fiesp chairman Paulo Skaf also asked for breaks on the 0.038 percent IOF surcharge for short-term transactions, levied on financial operations with overdrafts and on loans.

The Economy Ministry asked for the Federal Revenue Service to analyze the proposal.

Fiesp states that the tax exemption would allow for a reduction in the cost of credit and “will help both individuals and companies, contributing to the strengthening of companies and the maintenance of jobs, which are indispensable for the resumption of economic growth.”

IOF is charged on foreign card purchases, revolving credit, selling foreign currency, and other financial procedures. IOF was lifted in April and in December 2020 as a way to offset the economic effects of the coronavirus pandemic.