Brazil’s Senate Approves Payroll Break Without Tax Hike
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The Senate on Tuesday approved a bill to gradually reduce payroll taxes for 17 sectors of the economy, after Congress extend the waiver until 2027.
The project, which will now go to the lower house, includes compensation measures for the benefit without raising the tax burden. A proposal from President Luiz Inacio Lula da Silva’s administration for an increase in the income tax rate for interest on equity to 20% from 15% was removed from the final text.