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Tax On Big Tech Companies May Raise BRL 5bn Per Year

BRAZIL
  • With deputy Finance Minister Durigan saying earlier that the government needs to tax big tech companies, Folha de S.Paulo have reported that the Finance Ministry is working on a proposal for a new tax that will collect as much as BRL 5bn per year from tech firms. Folha also reports that another proposal for a global minimum 15% tax on the profits of MNC’s is at an advanced stage and should be submitted later in the year.
  • Meanwhile, Finance Minister Haddad has said that recent efforts by the economic team will enable the government to meet its fiscal targets for this year. He also said that he is more comfortable with the 2025 budget than he was with the 2024 version. The budget must be delivered to Congress before month end.
  • As the market awaits the budget, BRL has remained on the back foot today, currently trading 0.6% weaker against the dollar around 5.54. A continuation higher in USDBRL would open 5.6724, the 61.8% retracement of the Aug 5 - 19 correction.

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