Brazil Income Tax Bill Stalls, Putting Reform Agenda at Risk
- Bill unlikely to pass in current form, key congresspeople say
- Markets increasingly wary of fiscal pressures, lack of reforms
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Brazil’s long-awaited income tax overhaul is facing increasing opposition by key lawmakers, mayors and business leaders, diminishing chances of its approval anytime soon and hurting investor confidence in the country.
The bill, originally designed by Economy Minister Paulo Guedes to lower taxes on corporations while introducing a levy on dividends, is unlikely to pass by the lower house in its current form, according to seven lawmakers from the government coalition and the opposition, four of which requested anonymity to speak about the negotiations.