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Brazil’s Bolsonaro hikes finance tax to pay for pandemic welfare program By Reuters


© Reuters. Jair Bolsonaro, Brazil’s president, watches as he performs at the Planalto Palace ceremony in Brasilia on September 15, 2021. REUTERS/Adriano Machado

RIO DE JANEIRO (Reuters) – Brazil President Jair Bolsonaro on Thursday signed a decree to raise taxes on financial transactions for three months to pay for the so-called Auxílio Brasil pandemic welfare program.

His office stated that it expected the 2.14 billion reais (or $407.13 million) higher IOF taxes, which are charged on credit and foreign exchange transactions as well as bonds or securities to be generated by the increased tax. The IOF would be raised by the office in a manner that it did not specify.

The Auxílio Brasil program is designed to protect some of Brazil’s poorest families from the economic harm caused by the coronavirus pandemic.

($1 = 5.2563 reais)

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