Taxing dividends can make up for the revenue hit, Tippett says

Minister of Planning, Simone TippettHe stated, Friday (September 15, 2023), that imposing taxes on dividends distributed by companies could be an alternative to compensate for the frustration in revenues expected in the 2024 budget. This came in an interview with the news agency. Reutersin Madrid.

“I wouldn’t say he would do that; [mas] It has, for example, taxes on dividends. Brazil does not impose taxes on profits and gains, and no project was presented.”said Tippett.

The Minister also said that Brazil has royalties and “one billion” Of the reais from Petrobras’ profits to be received that were not counted as revenues in the draft budget sent to Congress. According to her, this would give the Finance Minister, Fernando Haddada range of options for balancing the books in the coming year.

Tippett said Brazilian budget legislation allows revenue programming to include measures that have not yet been confirmed, and also allows the government to replace one project with another if the initiative is not approved.

The government of the former president Jair Bolsonaro (PL) sent a bill to Congress that included taxing dividends, among other changes to the income tax, but the proposal stalled in the Senate.

The 2024 budget bill, sent to Congress at the end of August, forecasts a primary surplus of R$2.8 billion. This balance includes revenues of R$168.5 billion from new fundraising measures proposed in recent months, including measures that have not yet been approved.