Lula Aims to Offset Costly Tax Break, Keep Fiscal Goal in Reach
- Gradual end to Brazil tax break to cost 26.3 billion reais
- Government seeking to eliminate primary fiscal deficit in 2024
Luiz Inacio Lula da Silva and Fernando Haddad
Photographer: Andressa Anholete/BloombergThis article is for subscribers only.
Brazil’s government said it will issue a provisional measure to offset the cost of a contentious payroll tax break as it seeks to keep the benefit from derailing efforts to hit its primary fiscal target this year.
The measure will limit tax credit compensation for companies, the Finance Ministry announced Tuesday.