November 17, 2021
Markets

Brazil’s second phase of tax reform bill proposes tax cuts for individuals, companies

Brazil’s Economy Minister Paulo Guedes speaks during a ceremony to launch a program to expand access to credit at the Planalto Palace in Brasilia, Brazil, August 19, 2020. REUTERS/Adriano Machado

BRASILIA, June 25 (Reuters) – Brazil’s government on Friday unveiled the second phase of its wider tax reform bill, in which it aims to reduce income tax for up to 30 million workers, exempt 16 million from paying any tax at all and increase levies on financial market capital gains.

Brazil’s tax system is widely seen as one of the most complex in the world, and the government insists that simplifying it and reducing the overall tax burden is crucial to fostering sustainable, long-term investment and economic growth.

“Thirty million salaried workers in Brazil will pay less income tax because, for the first time, we are taxing capital gains,” Economy Minister Paulo Guedes told reporters after…

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