Brazil Lawmakers Gear Up for Fight Over Corporate Tax Exemptions

Scaling back corporate tax exemptions in Brazil will be top of the agenda for lawmakers when they meet with the government on Sunday night, House Speaker Hugo Motta said.

The talks come as the government of President Luiz Inacio Lula da Silva tries to plug a hole in the budget with tax hikes, a strategy criticized by Motta, who was elected speaker with broad backing, and the country’s top bankers.

Brazil has reached an “inflection point” that requires state spending to shrink, Motta said Saturday at a business conference held in Sao Paulo state.

“We are tied to a model ...