According to the Reuters Agency, Brazilian President Jair Bolsonaro said on Friday that the government would not create new taxes under the tax reform program and would not restore the so-called CPMF financial transaction tax. The reform is to be based on a combination of current taxes.
The Brazilian government is in a difficult fiscal situation. Revenue is limited because growth is very weak. The Ministry of Economy last week lowered the forecast of growth to 0.8%, And there's not a lot left in the budget.
The administration uses all available tools to raise money by implementing a general privatisation programme or extensive concessions.
The reform and simplification of the complex tax system in Brazil, in order to reduce the country's overall tax burden and boost economic growth, is one of the main priorities of the Ministry of Economy In the second half a year. The government wants to simplify federal taxes, perhaps replacing four or five taxes one tax.
The government declares that the unpopular CPMF tax will not be reinstated, as the opponents of the reform feared. CPMF has been introduced In 1993 as a temporary subsidy measure to the Brazilian public health care system and was implemented to 2007 This tax was 0.38% fees for all financial transactions, including checks.
A transaction tax is to be introduced on the basis of the CPMF, which will 5 In 1, i.e. IPI (Excise Tax), P.I.P., Cofins (Social Security Contributions), CSLL (Contribuição Social Sobre o Lucro Líquid – social security) and wage contributions which are combined into a single rate (tax) on transactions.
Currently, Brazil functions 44 tax types, while in Poland, we have them 17.
Author:
Katarzyna Kołbuś - Editor leading RB Magazine. From Over 10 years related to industry press, including the Financial Gazette and portal ipip.com.pl, which is devoted to finance, taxation, law, politics and the economy. She graduated from Polish philology at the UMCS and the linguistic text editing at the University of Warsaw