Brazil Congress Overturns Bolsonaro Tax Veto in Jab at Austerity
- Lawmakers reverse president’s veto on payroll tax reductions
- Legislators say tax benefit helps preserve jobs amid crisis
This article is for subscribers only.
Brazil’s congress overturned a presidential veto on corporate payroll tax reductions, further straining the nation’s budget amid unprecedented stimulus spending.
In a joint session of the lower house and the senate on Wednesday, lawmakers voted against President Jair Bolsonaro’s veto, thus extending the tax cuts through 2021 for sectors including construction and transportation at a cost of 6 billion reais ($1.1 billion). During the debate, they said allowing the benefit to expire now would have caused lay-offs in a country that’s reeling from the coronavirus.