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Strategies & Market Trends : Telebras (TBH) & Brazil -- Ignore unavailable to you. Want to Upgrade?

To: wl9839 who wrote (15247)	5/12/1999 2:17:00 PM
From: wl9839	Read Replies (1) \| Respond to of 22640

Brazil April Tax Revenue Falls on Absence of Bank Charge Brasilia, May 12 (Bloomberg) - Brazilian tax collections declined in April, as one-time breaks for automakers and the absence of a levy on bank transactions set back efforts to reduce the swelling budget deficit. Total revenue fell 3.1 percent to 11.8 billion reais ($7.1 billion) on the same month a year ago, the revenue department said. Recipts declined 11.5 percent from the previous month. Receipts could increase in June, as the tax on financial transactions, which lapsed at the end of last year, takes effect again. The tax would have brought in as much as 800 million reais extra each month, the department said. In the first three months, though, Brazil was outlawed from collecting the tax for 90 days after congress raised it to 0.38 percent from 0.20 percent. The government has also lost money through tax concessions to automakers, the department said. Receipts from a value added tax on industrial products, called the IPI, fell to 21 million reais in April from 120 million reais a year ago. Losses were only partially offset by revenue from a separate financial tax, known as the IOF, which was reintroduced last year. Revenue during the first four months of the year fell 4.9 percent to nearly 49.1 billion reais. The figures were also skewed by receipts a year ago of some 4 billion reais from the granting of telecommunication service concessions. Brazil needs to cut spending and raise taxes to reduce a budget deficit of 132 billion reais ($79.7 billion), almost 14 percent of gross domestic product. ------------------------------------------------------------------------ © Copyright 1999, Bloomberg L.P. All Rights Reserved.