Brazil’s Ibovespa falls 2.3% after Chamber approves taxing dividends

Brazilian market runs counter to international stock markets; drop in industrial production increases concerns.

RIO DE JANEIRO, BRAZIL - The Ibovespa fell on Thursday, September 2, after the Chamber of Deputies approved the income tax reform, which includes taxation of dividend distributions and the end of interest on equity (IoC), a form of profit distribution. Although the measure provides tax exemption for small companies, virtually all listed companies should be affected.

The downward movement occurred against international market gains and led the main B3 index IBOVESPA to a fall of 2.28% - the worst since May 12. Ibovespa ended the trading session at 116,667 points.

The House approved reducing the dividend tax rate from . . .

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