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Lula’s new fiscal framework is turning into a tax monster

By Gianlucca Gattai

Brazilian Minister of Finance, Fernando Haddad, said he needs to increase government revenue by R$110 billion (US$21.7) and R$150 billion (US$29.6 billion) to make the goals in the proposed fiscal framework feasible.

The statement was made this Monday (03) in an interview with the news channel GloboNews.

Brazilian Minister of Finance, Fernando Haddad (Photo internet reproduction)

According to him, to this end, the Lula government will initially present three measures to increase tax collection:

  • Taxation of electronic betting: goal to raise R$12 billion to R$15 billion per year;
  • Taxing e-commerces that evade the IRS rules, not paying taxes. He did not cite the expected value of tax collection with this measure.
  • Not allowing the subsidy to states for investment to be equated with the funding, which could yield R$85 billion to R$90 billion.

“Between R$110 billion and R$150 billion, you zero out the deficit next year,” said the Finance Minister.

With information from Gazeta Brasil

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