BRASILIA (Reuters) – Brazil’s Senate approved on Wednesday a bill to increase tax revenue that would prevent companies from using corporate tax discounts granted by states to reduce taxable income for federal government coffers.
The measure is key to efforts to rework government revenue and spending plans, which includes the goal of eliminating the primary budget deficit next year.
President Luiz Inacio Lula da Silva must sign the bill for it to become law since it was already approved last week by the lower house of Congress.
The text of approved proposal also includes changes to so-called interest on equity (JCP) payments that currently enable companies to deduct shareholder remuneration from their corporate taxes.
(Reporting by Maria Carolina Marcello in Brasilia; Writing by Andre Romani in Sao Paulo; Editing by Kylie Madry and David Alire Garcia)
