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Government Proposal To Tax Dividends Faces Pushback

BRAZIL
  • Marginally softer IGP-DI inflation:
    • Brazil's June IGP-DI Inflation Index 0.11% M/m; Est. 0.20%
  • Elsewhere, Brazil's government proposal to tax dividends faces pushback which could lead to a rate between 15% and 20%, said a person with knowledge of the matter who asked for anonymity because the discussions aren't public. (BBG)
    • Economy Ministry, however, will insist on a 20% dividend tax, said the person.
    • Government negotiates reducing corporate income taxes by 10pp in the first year of the tax reform.

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