Brazil Finance Chief Says Tax-Exempt Bonds Need To Be Reviewed

Incentive given to tax-exempt bonds needs to be revisited, Brazil’s Finance Minister, Fernando Haddad, said in an interview to GloboNews.

• These bonds, which are exempt from income tax, compete with Treasury bonds and cause a distortion in the local market, according to him
• “We will have to return to the topic addressing it in another way,” said Haddad, recalling that the government proposed ending the exemption to Congress in 2025, but was unsuccessful
• The minister said interest rates could be lower in Brazil and that there comes a point when the benchmark Selic rate becomes so high that inflation ...