LatinNews Daily - 27 November 2023

* Brazil’s President Luiz Inácio Lula da Silva has vetoed a bill (PL 334/2023) that would have extended a tax breaks on payrolls for 17 sectors until 2027. The affected sectors include construction, vehicle manufacturing, clothing & textiles, call centres, among other industries and services. On 24 November Finance Minister Fernando Haddad, was cited by local press as defending the veto and calling the bill unconstitutional. He argued that there is already “another constitutional mechanism which determines the revision of all tax benefits for eight years”, which PL334/2023 would have violated. Lula’s decision to reject the extension of tax breaks comes amid his government’s efforts to raise more tax revenue, having tabled several pieces of legislation for this purpose, such as a bill to tax offshore and exclusive funds. However, Lula’s veto has faced criticism in congress. The senate president, Rodrigo Pacheco, has reportedly stated that he would push for a motion to override the veto by the end of the year.