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LatinNews Daily - 03 September 2021

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In brief: Small tax reform advances in Brazil

* Brazil’s federal chamber of deputies has approved an income tax reform with 398 votes in favour and 77 against. This reform to income tax was tabled by the government led by President Jair Bolsonaro and is part of a wider tax reform initiative, which has been broken up into different proposals to facilitate its approval in congress. Among other things, the reform approved by the chamber cuts corporate income tax from 15% to 8%; raises the lower income limit for income tax exemption from R$1,900 (US$367) monthly to R$2,500; introduces a 15% tax on profits and dividends; and raises a tax on mining companies known as the CFEM from 4% to 5.5%. The reform, which is criticised by the likes of the Federação das Indústrias de São Paulo (Fiesp) business lobby, now goes to the senate for discussion.