In a 6-4 vote, the Supreme Court decided that companies buying inputs produced in the Duty-Free Zone of Manaus are entitled to record credits on manufactured goods tax. The decision will lower federal revenue by BRL 10-16bn. With that money, it would be possible to increase the Bolsa Família cash-transfer program by 50%, or federal infrastructure investments by 60%.
The Duty-Free Zone of Manaus (the only one of its kind in Brazil) was created in 1967 by the military dictatorship to promote industrial development in the heart of the Amazon. Instead, it ends up fostering fiscal maneuvers. Many companies with complex production chains open up subsidiaries in Manaus to produce basic goods—and generate tax credits for the parent company, which is often located in a more developed area.
Homicides caused by the police continue to rise in Rio, going up 23% in April when compared to the same month in 2018. In comparison to March, these deaths dropped 4%. Over the year, an average of 5 citizens were killed every day in Rio. https://t.co/31YDFxryzx
Former Senator and chairman of Brazilian Social Democracy Party (PSDB) Eduardo Azeredo has left the party. He was likely going to be expelled or asked to leave by the party’s top brass. Azeredo was sentenced to 20 years in prison for corruption and money laundering https://t.co/aAWDpJiKs6
Brazi's Central Bank's decision to intervene in the depreciation of the Real hasn't worked so far, as the U.S. Dollar rate continue to rise around BRL 4.10 on São Paulo's stock market. The Central Bank has decided to tame the loss of value, holding three currency auctions by Wed. https://t.co/xnFWHjVQ8U