Brazil’s Economy Minister raises empty talk of income tax changes

Economy Minister Paulo Guedes and President Jair Bolsonaro. Photo: Antonio Cruz/ABr

Economy Minister Paulo Guedes defended changes to the country’s income tax system. Mr. Guedes proposed taxing corporate dividends (which are currently tax-free), while lowering corporate income tax rates from 34 to 30 percent.

“This is what Brazil needs to receive investments from abroad,” he said on Monday. The minister argued that the move would be important for the country to accede to the Organization for Economic Cooperation and Development (OECD).

It is hard to take the proposal seriously. Changing the tax code would require a heavy dose of political negotiations — a goal nearly impossible in an electoral year.

Amanda Audi

Amanda Audi is a journalist specializing in politics and human rights. She is the former executive director of Congresso em Foco and worked as a reporter for The Intercept Brasil, Folha de S. Paulo, O Globo, Gazeta do Povo, Poder360, among others. In 2019, she won the Comunique-se Award for best-written media reporter and won the Mulher Imprensa award for web journalism in 2020