Brazil raises taxes on financial firms

Rogerio Jelmayer – The Wall Street Journal, 9/16/2015

Brazil’s Senate approved a tax increase on financial firms’ profits, part of a government effort to boost the country’s revenue and cut its budget deficit amid weak economic growth.

The Senate step follows the approval by the lower house earlier this month, and now must be signed by President Dilma Rousseff before it can be implemented. The so called CSLL tax will rise to 20% from 15%, with the increase expected to take effect Oct. 1.

The increase, which will affect banks, brokerages and other financial institutions, is likely to generate extra revenue for the government worth 900 million Brazilian reais ($233 million) this year; BRL3 billion in the next year; and BRL4 billion in 2017, as the increase will be implemented gradually.

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