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Brazilian Finance Ministry Denies Plan to Impose Tax on FDI

Brazil’s Finance Ministry denied a report that the government is considering a tax on foreign direct investment to stem the appreciation of the real.

Veja magazine reported in this week’s edition that the government is studying the implementation of a tax on all capital inflows as a means of curbing currency gains.

There are no studies at the moment to tax FDI, Finance Minister Guido Mantega said, according to a statement read by a press officer over the phone. Mantega also said that the measures taken so far to stem the currency gains were successful, said the press officer, who can’t be identified because of internal policy.

The government continues to monitor the currency market closely and is ready to take new measures to guarantee a competitive exchange rate, Mantega said, according to the statement.

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