The federal government yesterday sent (11) a provisional measure to the National Congress to compensate for the loss of collection with the reduction of the tax rates and business financing. The government’s retreat would be great if the IOF reduction was accompanied by spending cutting measures, which of course did not happen. On the contrary, the government decided to compensate for the loss of tax collection on financial operations by raising taxes on investments in the financial market.
Generally speaking, there will be a 5% tax on income tax -free income securities (CRI, CRA, LCI, LCA and encouraged debris) and dividends distributed from real estate funds. There will also be replacement of the regressive table of fixed income tax (15%to 22.5%) with a single rate of 17.5%, regardless of the application deadline. For shares, the sale of paper with profit goes from 15% to 17.5% (except for volumes less than $ 60,000 in the quarter).
New taxation in financial investments linked to (LCA and CRA), real estate sector (LCI and CRI) and infrastructure (incentive debentures) may decrease investor incentive to put money in these roles, meaning a credit reduction for these sectors – or otherwise: raising interest rates in these segments.
Probably given the negative consequences of the provisional measure, less credit (more interest), greater taxation for the investor and legal insecurity (alteration of rules established for years without due debate with society), Congress must overthrow the provisional measure after negative repercussions in the market and the political environment. It remains to be known, what will be the next tax to be proposed by the government.
