Recently, the Brazilian Senate approved a bill, drafted by the president Lula da Silvawhich increases the tax burden on the exclusive funds of high-yield taxpayers and financial investments abroad—known as offshore—of companies or individuals.
The initiative returned to Da Silva’s office for its promulgation, in a context in which the slogan of his third term seeks that “the poor pay less and the rich pay more”.
This tax on the rich is one of the axes of the reform proposed by the left-wing ruler, and modifies laws to raise the rates received from these exclusive funds, summarizes the EFE Agency.
Thus, there will now be a rate of 8% for entrepreneurs who agree to update the value of accumulated income until 2023, and those who do not comply with the change will face a rate of 15% on their profits.
According to estimates of the Governmentthe new tax on investments of the rich will allow raising 3.5 billion reais at the end of this year —approximately US$720 million—; and by 2024, about 20 billion reais—just over US$4 billion.
By 2025, 7 billion reais would be collected, equivalent to US$1,434 million.
Currently, a third of Brazilians – almost 70 million people – suffer from severe and moderate food insecurity, and about 10 million from chronic hunger. Lula’s administration seeks to mitigate the rise in poverty with these changes in the tax scheme. According to your central bankaround US$40,979 million of Brazilian assets are abroad.
Source: Larepublica
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