SAO PAULO (Reuters – Brazil’s government will raise taxes on banks on Thursday to help fund a small firm debt renegotiation plan.

Under an executive order signed and approved by President Jair Bolsonaro, Economy Minister Paulo Guedes, the levy will take effect from August 1 through December 31, but Congress has not yet approved it.

The CSLL tax is a tax that banks levy on their net income. It will rise to 21% from 20 percent, and the tax on financial institutions other than banks will go up to 16%.

According to the government, it anticipates that this move will raise additional 244.1 million Brazilian reais (49.4 millions).

Reuters reported last month that three Economy Ministry sources had informed them of a government study to increase the CSLL in order to finance the Congress approved program to repay micro-enterprise debts.

Finance for the program has been estimated at around 500 million Brazilian Reals. To help finance it, President Jairbolsonaro also signed a decree to lower tax rates on soda syrups manufactured in Manaus Free Trade Zone (in the state Amazonas).

According to a government statement, this decree is immediately effective and doesn’t need approval by Congress. It will raise revenue by approximately 250 million reais each year.

($1 = 4.9385 reais)