Brazil’s Government Prepares Proposal to Tax Big Tech

Fernando Travaglini and Beatriz Reis
·2-min read

(Bloomberg) -- The Finance Ministry is working on a proposal for a new tax on technology giants to collect as much as 5 billion reais ($903 million) per year in additional revenue, says Folha de S.Paulo.

Another proposal for a global minimum tax, which would charge an effective rate of 15% on the profits of multinational corporations, is also at an advanced stage and should be submitted later in the year, according to the newspaper, which cited unidentified aides to Finance Minister Fernando Haddad.

Budget

Haddad said Tuesday that the effort made by the economic team will enable the government to comply with its fiscal target this year, which calls for eliminating the primary deficit, excluding interest payments.

The minister said he is more comfortable with the 2025 budget than he was with the 2024 version, which, according to him, underestimated ordinary revenues and overestimated extraordinary ones. The budget must be delivered to Congress by the end of this month.

However, arriving at a proposal for a zero deficit has proved to be increasingly difficult, according to Valor Economico, which cites an unidentified member of the economic team.

According to local newspapers, the 2025 Budget should include a proposal to increase the tax over interest on equity and the so-called Social Contribution for Net Income, or CSLL.

Central Bank Pick

Haddad said President Luiz Inacio Lula da Silva may soon announce his pick for central bank chief.

The head of the Senate’s economic affairs committee, Vanderlan Cardoso, said that he has not yet been approached by the government to discuss hearings for the pick, says CNN Brasil. Cardoso ruled out the possibility of the process being carried out in a rushed manner, stating that there is no possibility of the hearing being scheduled for next week.

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