Senator Flavio Bolsonaro said his campaign is studying constitutional changes to parts of Brazil's consumption-tax reform and other Lula-era tax measures before the presidential runoff.
Senator Flavio Bolsonaro said on Wednesday that his team was studying constitutional amendments to revise parts of Brazil's planned consumption-tax reform, arguing the design would leave the tax burden too high. The comments came as he campaigns in a presidential runoff against President Luiz Inacio Lula da Silva.
Bolsonaro also said he wanted to cut payroll taxes so more of workers' income stayed with them. Adviser Daniella Marques told local media the campaign would review a dividend tax that took effect in January and would scrap a 12 percent levy on crude-oil exports introduced this year, which she called an aberration.
Reuters said Lula's platform instead backs further steps it describes as tax justice, including fewer exemptions, while carrying out the consumption-tax overhaul passed under his government. Lula introduced the dividend tax to help pay for an exemption aimed at middle-income earners.
Agence France-Presse reported that Bolsonaro took about 47 percent in Sunday's first round to Lula's about 45 percent, with most of the remaining vote going to conservative candidates. Lula said he was disappointed and still intended to fight for a fourth nonconsecutive term.
The tax remarks are a campaign pledge, not enacted law. No runoff date was fixed in the Reuters tax story.
People Sentiments Mixed
- Bolsonaro said the current tax design would leave the burden excessively high.
- Lula said he was disappointed by the first-round result and still convinced he could win.