Category Taxation in Brazil

Brazil Hikes Beer Tax Before World Cup

April 4, 2014 Taxation in Brazil

Beer TaxBRASILIA – The government of Brazil is raising taxes on beer, with the hope of cashing in on the influx of tourists and celebrations during the upcoming World Cup.

Earlier this week the Ministry of Finance of Brazil issued a new statement saying that the taxes on beer, and other selected beverages such as carbonated beverages, energy drinks and juices, will be raised immediately, effectively hiking the retail price of such products by up to 0.4 percent, or USD 0.01 per bottle of beer.

The increased tax collections from the sale of drinks is expected to bring in an extra BRL 200 million this year alone, as the demand for beer and other cold drinks is expected to be particularly high during the World Cup in June and July this year.

The extra revenues from the tax hike have already been earma...

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Tax Revenues Continue Growing in Brazil

December 24, 2013 Taxation in Brazil

RIO DE JANEIRO – Overall tax collections are on the rise in Brazil, but the growth is coming at the unintended cost of increased complexity for taxpayers.

Late last week the Federal Revenue Secretariat issued a new statement showing that the tax-to-GDP ratio in the country has risen for the third consecutive year in a row, reaching 35.85 percent in 2012, up by 0.54 percent compared to the previous year.

In real terms, the tax revenues for the year were approximately BRL 1.57 trillion, compared to a total GDP of BRL 4.38 trillion.

According to the Federal Revenue Secretariat, the increasing growth can be attributed to the continued stabilization of the national economy, and to the country’s decreasing unemployment, which has fallen to 4.6 percent this November.

The rise in collections was...

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Brazil Breaks Tax Record

January 24, 2013 Taxation in Brazil

flagBRASILIA – Despite seeing record breaking tax revenues, the government of Brazil is still not meeting its fiscal targets.

The Brazilian Tax Authority announced on January 23rd that the country has seen its highest level of tax revenues ever, but despite the good news, the government has not met its own tax revenue targets for the 2012 year.

The total tax revenues for the 2012 calendar year reached BRL 1.029 trillion, which is a 6.1 percent increase compared to 2011.

However, due to the country’s escalating inflation levels, the increase is only equivalent to a 0.7 percent rise in revenues when inflation is taken into account.

it is currently estimated that the inflation level in Brazil has now reached 6 percent.

Both the real increase and the inflation adjusted increase are far below the g...

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Tax Incentives to Improve Brazilian Cars

October 5, 2012 Taxation in Brazil

Car manufactureBRASILIA – The automotive industry in Brazil will soon feel a renewed boost as the government sets its sights on helping car manufacturers through tax incentives.

In a press conference held in Brasilia on October 4th the Minister of Trade and Industry of Brazil Fernando Pimentel outlined several tax changes the government will implement starting from 2013 in order to improve the safety and efficiency of cars produced in Brazil, to increase demand for locally produced cars, and encourage development of automotive technology.

Tax incentives will be offered to national car manufacturers who implement modern safety technologies in their automobiles, and  all new cars will be required to have ABS brakes and safety air bags as a standard fitting.

Tax allowances will also be granted to manufactu...

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Tax Cuts, Cheap Loans for Brazilian Companies

April 4, 2012 Taxation in Brazil

Dilma Rousseff Announeces Tax CutsBRASILIA – The government of Brazil will soon implement several new economic stimulus measures, including tax cuts, with the aim of reigning in the negative effects of the continually rising value of the Brazilian real.

In a speech delivered on April 3rd in Brasilia, the President of Brazil Dilma Rousseff revealed that the government will soon implement several tax cuts in order to increase local production and fend off the “predatory competition” of other economies around the world.

According to the President, throughout 2013 the government will cut the rates of payroll taxes for employers in the industries most affected by the recent surge in the value of the Brazilian Real, such as automobile production, plastics production, and textile production and processing.

The measure is int...

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