Brazil House Hands Rousseff Loss on Tax Bill Day Before Key Voteby
Brazil’s lower house of Congress went against President Dilma Rousseff and approved amendments that reduce the amount of money the government had expected to raise from a broader tax bill.
The government earlier this year had proposed a change to the tax system to allow companies and individuals to pay back taxes. Legislators on Tuesday watered down the proposal that will result in lower revenue. Some members of the ruling coalition on Tuesday sided with the opposition. The government’s leader in the house, Jose Guimaraes, said after the first vote that lawmakers were out "solely" to defeat the administration.
The lower house is scheduled to decide on Wednesday on another government bill on whether Brazilians will be allowed to repatriate money held offshore without facing charges for tax evasion. The bill is designed to raise tens of billions of reais for the government and is a key part of Finance Minister Joaquim Levy’s strategy to boost fiscal revenue and narrow the budget deficit.