Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Brazil tax reform slides into confusion as key official fired, Bolsonaro wades in

EconomySep 11, 2019 07:59PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: Brazil's President Jair Bolsonaro gestures during a parade celebrating the country's Independence Day in Brasilia

By Marcela Ayres and Jamie McGeever

BRASILIA (Reuters) - A key figure in Brazil's plans to reform the country's complex tax system was fired on Wednesday, government sources told Reuters, reflecting disagreements in cabinet about the form legislation should take.

The departure of Marcos Cintra, special secretary to Brazil's federal revenue service, was confirmed in a statement from the Economy Ministry.

Local media reported on Tuesday that a senior member of Cintra's team had outlined a financial transactions tax at a rate of 0.2%-0.4% modeled on the unpopular "CPMF" tax introduced in 1993 and abolished in 2007.

President Jair Bolosnaro later tweeted that Cintra was dismissed due to "differences" over the government's tax reform bill, particularly reintroducing a version of the CPMF.

Bolsonaro tweeted that he will rule out a reintroduction of a CPMF tax or an increase in the tax burden, putting him at odds with Economy Minister Paulo Guedes, an ardent supporter of a transactions tax.

"The president is not a fan of that tax," said Vice President Hamilton Mourao, adding that Bolsonaro was angered that discussions over the levy had already started appearing on social media even though he had not signed off on it.

In its statement, the Economy Ministry said Guedes and team were working on a new tax regime "to simplify standards, reduce costs, lighten the tax burden on households and business."

"The proposal will only be released after the approval of Minister Paulo Guedes and President Jair Bolsonaro," it said, adding that Guedes thanked Cintra for his service and Jose de Assis Ferraz will temporarily assume the position.

One source told Reuters that Guedes decided Cintra should be dismissed because he spoke about the issue publicly even though he had not fully drafted his proposals, and he never appeared in front of lawmakers to answer questions.

Guedes has said that a new CPMF should be part of the reformed tax system. He and others argue that a financial transaction tax would be simple to implement and collect and provide a steady revenue stream.

But critics say it is regressive and hits the poor hardest. The CPMF, which taxed all financial transactions including checks, was always unpopular, and opposition to it runs deep.

Tax reform is the government's main economic priority in the second half of this year, after it pushed social security reform to the brink of full Congressional approval in the first half.

Brazil tax reform slides into confusion as key official fired, Bolsonaro wades in
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email