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LatinNews Daily - 12 July 2021

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In brief: Brazil’s Guedes defends changes to income tax

* Brazil’s economy minister, Paulo Guedes, has repeated his assurances that a planned tax reform will not translate into an increase in taxes for Brazilians. Speaking during a virtual event organised by the Fundação Getúlio Vargas (FGV) university, Guedes specifically defended a bill which was presented to congress last month as part of wider tax reform efforts, and which would reform the country’s income tax for individuals and corporations with the aim of simplifying the income tax system and reducing distortions. Amongst other things, the proposal would raise the lower income tax limit for individuals from R$1,900 (US$365) to R$2,500 and introduce a 20% tax on dividends, with exemptions on monthly earnings of up to R$20,000. Guedes defended the introduction of a tax on dividends in particular during the FGV event, while acknowledging that the government faces pressures to not increase taxes on the wealthy.