Brazil won't levy IOF on foreign stock investors
Reuters, Friday, January 22, 1999 at 14:43
SAO PAULO, Jan 22 (Reuters) - Brazil's benchmark stock
exchange said Friday that foreign investors in Brazilian stock
funds will not be charged the additional Financial Operations
Tax (IOF) that the government plans to levy starting on Jan.
24.
As part of its austerity drive, the government announced
last month a temporary increase of 0.38 of a percentage point
in the IOF, which currently ranges between nil and 6 percent,
to raise additional revenues.
The government announced the tax hike as part of a series
of new fiscal measures to compensate for a setback in its
fiscal austerity drive, seen as crucial to protect the economy
from an Asian-style currency collapse.
Brazil's internal revenue service also reiterated on Friday
that it will not charge the IPI industrial production tax in
the first half of the year.
As of June 30, however, a 5 percent tax will be levied on
manufacturers of capital goods, except for theme park equipment
makers, who will pay a 10 percent tax.
Copyright 1999, Reuters News Service
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