By Lisandra Paraguassu and Ricardo Brito
Brazil (Reuters) – The Brazilian government is expected to support a bill that proposes a 10% cut to federal tax relief, a major alternative to the proposed financial transaction tax (IOF) last month, two sources told Reuters on Thursday.
The bill shows that the bill was introduced by lower house MP Mauro Benevides, which fell by 5% in 2025 and 5% in 2026. The legislation also applies to fiscal and credit benefits.
The proposal shows that the tax cut break will not include the Manaus Free Trade Zone and nonprofit entities.
Brazil's Finance Minister Fernando Haddad said earlier this week that the government will announce a series of new fiscal measures next week to balance public accounts, and their endorsement is crucial to a re-examination of the controversial IOF tax rate hike.
The bill expected to support the government also prevents preferential or renewal of tax, credit and fiscal federal benefits.
(Reports by Lisandra Paraguassu and Ricardo Brito; Writing by Andre Romani; Editing by Brendan O'Boyle)
