The Tax on Circulation of Goods and Services (ICMS) will not be charged to farmers by the Brazilian state governments. The measure will help contain the rise in food prices, but it will also cost about R$40 billion reais to the public safes.
The problem is that many state governments are broken. The worst cases are Rio de Janeiro, the Rio Grande do Sul, Minas Gerais, Roraima, Rio Grande do Norte, and Mato Grosso, which have already declared a state of public calamity in the financial sphere.
Therefore, on the one hand, the measure that helps farmers and secure food prices in the short term will make even worse the financial situation of states facing a calamity situation in the public accounts in the long run.
Showing posts with label Tax. Show all posts
Showing posts with label Tax. Show all posts
Monday, 15 April 2019
Friday, 12 April 2019
Bolsonaro's government decides to interfere in fuel prices
Petrobras had announced that the average liter value of the fuel would rise 5.74% from today. However, the government of President Jair Bolsonaro, who until then claimed to be liberal in the economy, prohibited that the increase was applied.
The government fears a new strike by truck drivers like the one that stopped the country in 2018.
According to analysts, this measure hinders the work of reduction of debt and sale of assets made by Petrobras in recent years. The interference, very similar to the one made by the Dilma Rousseff government, can greatly harm the health of Petrobras. Petrobras' stock prices are expected to reflect this interference negatively. This should also drive the performance of the financial market in Brazil today and in the coming days.
In addition, the government also waved at the possibility of creating a tax on all financial transactions in Brazil. This should also be not welcomed with many criticisms of the Brazilian financial market.
The promise to reduce taxes made during the campaign of Jair Bolsonaro to the presidency generated many expectations in the Brazilian financial market. If the new tax is presented by the current government, the tendency is for the Brazilian financial market to take a more critical stance on the government.
The government fears a new strike by truck drivers like the one that stopped the country in 2018.
According to analysts, this measure hinders the work of reduction of debt and sale of assets made by Petrobras in recent years. The interference, very similar to the one made by the Dilma Rousseff government, can greatly harm the health of Petrobras. Petrobras' stock prices are expected to reflect this interference negatively. This should also drive the performance of the financial market in Brazil today and in the coming days.
In addition, the government also waved at the possibility of creating a tax on all financial transactions in Brazil. This should also be not welcomed with many criticisms of the Brazilian financial market.
The promise to reduce taxes made during the campaign of Jair Bolsonaro to the presidency generated many expectations in the Brazilian financial market. If the new tax is presented by the current government, the tendency is for the Brazilian financial market to take a more critical stance on the government.
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