Brazil to appeal tax ruling; finance minister downplays impact
Thu Mar 16, 2017 | 10:03am EDT
Brazil to appeal tax ruling; finance minister downplays impact
Brazil's government will appeal a court decision that is expected to reduce revenue from social security levies, Finance Minister Henrique Meirelles said on Thursday, adding that the impact from the ruling is likely to be much smaller than local media reported.
The Federal Supreme Court ruled 7-4 on Wednesday that the inclusion of the ICMS value-added tax in the base of calculation for so-called PIS and Cofins social security contributions was unconstitutional. The decision is seen as triggering large revenue losses for the government and accelerating moves to increase taxes.
Local media have reported that the cost of the ruling could reach 100 billion reais ($32 billion) for the past five years and 250 billion reais if recognized retroactively since 2003, when a legal dispute surrounding the issue began.
More:
http://www.reuters.com/article/brazil-tax-ruling-idUSL2N1GT0MY?rpc=401&
