Brazil's finance minister links potential IOF tax tweak to financial tax overhaul

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Brazil's finance minister links potential IOF tax tweak to financial tax overhaul

_{//business-finance.news-articles.net/content/202 .. ial-iof-tax-tweak-to-financial-tax-overhaul.html}
^{Published in Business and Finance on Monday, June 2nd 2025 at 13:40 GMT by Reuters}

The government last month hiked the IOF tax on some transactions to meet its fiscal targets, but the measure met with backlash and lawmakers signaled they could overturn it. Haddad suggested that discussion had opened the door to wider reforms. "Beyond addressing the 2025 issue, (the aim is) to carry out a structural reform for the coming years," the minister added.

Brazil's Finance Minister Fernando Haddad has linked the potential for a new fiscal framework to be announced in the coming weeks to the possibility of reducing interest rates, as reported by Reuters. Speaking at an event in Sao Paulo, Haddad emphasized the importance of fiscal responsibility and suggested that a new framework could help stabilize Brazil's economy. He indicated that the government is working on a proposal that would replace the current spending cap, which has been criticized for limiting public investment. Haddad's comments come amid ongoing discussions with lawmakers and economic stakeholders about the best path forward for Brazil's fiscal policy.

Read the Full Reuters Article at:
[ https://www.yahoo.com/news/brazils-finance-minister-links-potential-165057721.html ]

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