15% Minimum Tax: Brazil Targets Big Business to Fund Increased Spending
On Monday, the Brazilian government announced a strategy to increase next year’s budget by taxing Big Tech and multinationals.
Dario Durigan, the Finance Ministry’s Executive Secretary, highlighted upcoming legislation aimed at major tech corporations and multinational companies.
This initiative aims to address potential revenue shortfalls. Durigan revealed two key legislative proposals slated for 2024. The first targets big tech companies.
It proposes establishing a tax framework to reflect their significant economic presence. However, Durigan did not specify the tax rates or the expected revenue from this measure.
This approach mirrors global efforts to ensure that large tech corporations contribute fairly to tax revenues.
The second proposal introduces a groundbreaking measure: a global minimum tax rate of 15% on multinational corporations.
The specifics of this proposal remain undisclosed, following trends set by international fiscal discussions led by the OECD.
15% Minimum Tax: Brazil Targets Big Business to Fund Increased Spending
These measures are part of a broader strategy to balance government finances. Durigan mentioned these during a press briefing about the Annual Budget Law Project for 2025.
He emphasized the strategic nature of these proposals within global fiscal frameworks.
Furthermore, the government’s budget plan for the coming year includes a significant increase in mandatory expenditures, totaling R$132.2 billion ($23.61 billion).
This sum covers various costs:
- R$71.1 billion ($12.70 billion) for social security,
- R$36.5 billion ($6.52 billion) for personnel and social charges,
and additional funds for other social benefits and unemployment aids. The education and health sectors will also see substantial budget increases.
An additional R$18.8 billion ($3.36 billion) will be allocated, showcasing the government’s commitment to enhancing public services.
Additionally, discretionary spending will see an increase of R$11.7 billion ($2.09 billion). This highlights the government’s flexible approach to managing fiscal challenges.
These proposed tax measures and budget adjustments illustrate Brazil’s commitment to achieving economic stability and equitable growth.
They also reflect a conscious effort to align domestic fiscal policies with international economic standards.
More: Brazil news in English, every day from The Rio Times.
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief