Brazils Guedes says 10% tax on dividends could be approved this year

div classBodysc17zpet90 cdBBJodivpBRASILIA Reuters – Brazil Economy Minister Paulo Guedes said a small tax reform may be approved by Congress this year that would include a 10 tax on dividends, which are currently exempt.p

pGuedes, speaking at an event hosted by financial startup Traders Club, said the reform would also create a tax debt renegotiation program and lower corporate income tax but at a lower level than previously targeted by the government.pdivdivdiv classBodysc17zpet90 cdBBJodiv

pThe reform would be more limited than a proposal approved in the Lower House last year but not voted on in the Senate. That proposal set a 15 tax on company dividends. p

pThe minister said that if the current centerright coalition prevails in elections this year, it would be “natural” for him to stay in the federal government for a potential second term of President Jair Bolsonaro, who is seeking reelection in October. p

pAccording to Guedes, the coalition is advancing and the Congress is becoming more reformist.p

p“The band seems to be playing well,” he said.p

p

pp Reporting by Marcela Ayres editing by Jonathan Oatis and Mark Porterp

divdivdiv classBodysc17zpet90 cdBBJodivdivdiv