We’re covering Brazil’s new push for a tax reform — will this time be the charm? Souring relations with Argentina — and not-so-great with the U.S., either. Plus, Brazil reaches 2 million coronavirus cases.
Is the tax reform finally coming to life?
After a deal brokered with Congress, Economy Minister Paulo Guedes agreed to submit the government’s tax reform proposal by Tuesday of next week. An overhaul of the tax system is a longtime promise from Mr. Guedes, but he has failed to draft a proposal after 18 months in office. As a matter of fact, the government saying they will present the bill “next week” has become a running joke behind the scenes in Brasília.
Why it matters. Brazil’s tax system imposes a heavy burden on companies and individuals, collecting over BRL 1.1 trillion (USD 206 billion) in taxes already this year — an amount that would, in BRL 100 notes, fill 366 20-foot containers. It is also an overly complex system, forcing companies to spend big bucks on consultancies just to comply with the rules.
Financial transaction tax. The federal administration reportedly wants to slap a 0.4-percent tax on cash withdrawals and transfers — combined with a 0.2-percent levy on...