Wellton Máximo Reporter Agência Brasil

Brasília – It looks like the government will do pretty well in its decision to increase taxes so as to compensate for the fiscal impact of the 4.5% correction of income tax tables. According to the Receita Federal, the government will lose R$1.612 billion, but raise R$1.750 billion with tax increases on beverages and credit card purchases abroad.

Most of the additional government revenue will come from the higher tax on beverages (basically an increase of 15% in taxes known as IPI, Cofins and PIS), that is expected to bring in R$948. The other R$802 million will come from an increase from 2.28% to 6.28% in the transaction tax on international use of credit cards.

According to Sandro Serpa, a Receita Federal subsecretary, the government is adhering strictly to the Fiscal Responsibility Law in this case. “The budget has to be balanced. A loss of revenue must be compensated for elsewhere,” he declared.

With the announcement of the correction and the higher taxes, the government also revealed that any difference in taxes paid before the new tax tables went into effect will be returned next year.

Allen Bennett – translator/editor The News in English
Link - Perda de receita com correção do IR será compensada com aumento de impostos

Link - Imposto de Renda cobrado a mais até março será devolvido em 2012

* Link - Repasse de aumento do IOF para titulares de cartão de crédito poderá ser imediato

Link - Receita começa a implementar medidas para dar mais proteção a sigilo de