Brazil will Resume Collecting CPMF Tax
May 05, 1999 | By Keith Martin in Washington, DC
Brazil will resume collecting CPMF tax on financial transactions from June 17.
The tax lapsed at the end of last year, but Congress voted in March to extend it. The tax will be 0.38% for 12 months, after which it will drop to 0.30% for 24 months. Economists say the tax has the potential to increase consumer prices by 2.3% if it is passed through to consumers, but most expect the economy is soft enough that companies will be forced to absorb the tax rather than pass it through.