BRASILIA, July 19 (Reuters) – Brazil’s Finance Minister
Fernando Haddad confirmed on Wednesday that the government
intends to present a bill to Congress by next month aiming to
modify the taxation of closed-end funds as part of measures to
boost revenues.
These funds offer advantageous investment opportunities to
wealthier Brazilians by taxing earnings only when distributed to
investors.
Reuters reported on Tuesday that the government was
preparing measures for early passage to bring Brazil’s primary
budget deficit in 2024 to zero.
According to sources familiar with the matter, these
measures included a new model for taxing closed-end funds,
regulating changes to a federal income tax (CSLL) on state tax
benefits and the end of “interest on equity” (JCP) payments
allowing companies to deduct shareholder remuneration from their
corporate tax obligations.
Responding to journalists’ queries regarding the tax changes
for exclusive funds, Haddad mentioned that a bill on the subject
is expected to be introduced to Congress alongside the 2024
budget bill, which has to be submitted to lawmakers by the end
of August.
The minister also revealed that the government is preparing
a “package of measures” to be sent to Congress within the same
timeframe.
Following a meeting with lower house Speaker Arthur Lira
about the government’s agenda for the second half of the year,
Haddad expressed his belief that a new framework for collaterals
to reduce credit costs will be voted on in August.
He also said he expected increased collaboration between the
government and the central bank, stating that the recently
appointed director of monetary policy Gabriel Galipolo, who
previously served as his deputy in the ministry, will be a
crucial link in strengthening their relationship.
“We have an assessment that the (economic) slowdown is too
strong, this inspires caution,” he said. “Galipolo is going to
be a very important bridge.”
(Reporting by Marcela Ayres; editing by Diane Craft)
