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Bolsonaro Orders Changes To Tax Reform Proposal

BRAZIL
  • A long-awaited proposal to overhaul Brazil's income tax system was made less ambitious than originally planned amid changes ordered by President Jair Bolsonaro.
    • The proposal, which was delivered by Economy Minister Paulo Guedes to Congress on Friday, is part of a broader plan to simplify a system deemed as one of the world's most complex. While it pledges to not increase the overall tax burden, it's expected to bring in 1.8 billion reais ($365 million) to government coffers in the next three years.
  • Brazil's energy regulator Aneel set red flag 2, its highest level, for the July power rate due to a dry season in the main hydrographic basins of the national interconnected system, according to its website.
    • Unfavourable hydrological perspective puts pressure on costs related to risk and energy price in the short-term market, triggering a red flag 2, statement says.

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