Brazil Politics: Investment Funds May Be Taxed After Lula Veto

President Luiz Inacio Lula da Silva’s vetoes of some provisions of the consumption tax reform sanctioned on Thursday make room for taxing investment funds and exporters, according to the newspaper Valor Economico.

The funds were among the entities that would not be hit by the new Value Added Tax, according to the text approved by Congress. But Lula vetoed that part of the legislation, based on the list released by the presidential palace. Currently, the portfolios of the funds are exempt from income taxes, according to the report.

Lula also vetoed the part of the proposal that exempted exports. ...