BRASILIA (Reuters – Brazil Economy Minister Paulo Guedes indicated that Congress could approve a minor tax reform in this year’s Congress. This would involve a 10% tax for dividends. Currently, they are exempt from tax.

Guedes made the remarks at an event organized by Financial Start-up Traders Club. Guedes stated that reform will also result in a tax debt renegotiation plan and lower corporate income tax, although at a lower rate than was previously planned by the government.

It would have a smaller scope than the reform that was passed in the Lower House, but which was not approved by the Senate. This proposal proposed that a 15% tax be applied to dividends received by companies.

He stated that, should the center-right coalition win elections in 2018, it would be “natural”, for the minister to continue in the federal government in order to serve a second term for President Jair Bolsonaro who seeks reelection in October.

Guedes says that the Congress is reformist and is moving forward with the alliance.

He stated, “The group seems to be performing well.”