BRASILIA: The Brazilian government has announced a program to renegotiate debts owed it by debtors. It will cost debtors 150 billion reais ($29.9 million) and resolve disputes over taxes.

This program grants a discount up to 50% on the principal amount. The payments will be paid in five-year installments. Renegotiation deadline is July 29.

Economy Ministry didn’t project the impact of the tax move on tax revenue in the near term or the tax amount it would waive. It also noted that this estimation is not possible because taxpayers are not required to adhere to the program.

For the benefit of taxpayers, they must declare that they are debtors.

Moises Pereira is the general coordinator of tax administrative litigation.

($1 = 5.0190 reais)