Brazil reverses financial transaction tax
Brazilian authorities reversed last month's controversial financial transaction tax. However, the new tariff package increases the tariffs on online gambling and imposes a 5% income tax on private debt securities
Last month, Brazil enacted a tax on various financial transactions. This Sunday, June 8, the measure was repealed and replaced with another tax package.
According to Finance Minister Fernando Haddad, the revenue shortfall resulting from the May decision “will be offset by increased taxes on online gambling, private credit instruments, and financial institutions.”
Haddad noted that under the new plan, “all currently tax-exempt private debt securities would be subject to a 5 % income tax.”
In the minister’s opinion, the decision is aimed at eliminating market distortions that have hampered efforts to refinance public debt. He also announced that the tax on gross revenues from online gambling platforms would increase from 12 % to 18 %.
M.Pino
Source: investing
(Reference image source: Sumudu Mohottige on Unsplash)
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