* Brazil’s senate has approved a bill (PL 4173/2023) aimed at taxing the offshore and closed-end investment funds, considered a ‘tax on the super-rich’, which was approved by the lower house in October. The bill awaits the signature of President Luiz Inácio Lula da Silva to be promulgated. The senate’s approval marks a boost to the Lula government’s efforts to increase tax revenue. According to data from the central bank (BCB), Brazilian citizens have around R$200bn (US$41bn) invested in offshore funds. The fully approved legislation proposes a tax rate of 15% on long-term funds and 20% on short-term investments and the tax would be levied twice a year. The bill faced criticism from lawmakers affiliated with right-wing opposition parties, such as the Partido Liberal (PL) and Podemos (Pode). The PL’s leader in the senate, Rogério Marinho, argued that the government should balance its budget by cutting spending and boosting competitiveness rather than raising more taxes.
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LatinNews Daily - 30 November 2023
In brief: Brazil’s senate approves bill to tax ‘super-rich’
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