In an interview with Valor Econômico newspaper, Brazilian Economy Minister Paulo Guedes announced that the country will have a new tax along the lines of the former CMPF (Provisional Contribution on Financial Movement).
The announcement is a kind of electoral fraud because Jair Bolsonaro, during the presidential campaign, promised not to recreate the tax, including calling it "disgrace" and "damn".
In the interview, Guedes said he would propose rates of 0.2% to 1% on each transaction, but it would be up to Congress to set the size of the tax.
Another criticism about the new tax is its fate. According to Guedes, the new CPMF will have a rate of 0.2% to 1% and may raise R$ 150 billion. The old CPMF was created to increase the health budget but was not used for this purpose. Now the new tax does not even have this varnish.
The evident contradiction of government that claims to be neoliberal, but creates taxes to increase revenue. The tax, if created, will have a ripple effect and will produce distortions in the productive structure.
Several liberal-biased movements that were supporting the government are already criticizing the move. Liberal think tank Ilisp has already stated in his Twitter account that he will campaign against the new tax.
