Bloomberg News

Brazilian Lawmaker to Reject Tax Increase in Payroll Bil

October 17, 2011

Oct. 17 (Bloomberg) -- A Brazilian lawmaker who is sponsoring a government proposal to reduce payroll taxes said he will reject any attempt by the tax agency to increase levies on companies and investors.

President Dilma Rousseff signed a decree Aug. 2 that reduces payroll taxes for manufacturers of software, textiles, furniture and shoes. According to a story published today by O Estado de S. Paulo newspaper, Brazil’s tax agency is seeking to incorporate new taxes on company profits into the decree, which needs congressional approval.

“If there is any tax increase, we definitely won’t accept it, because the purpose of the bill is to cut expenses, not increase them,” lawmaker Renato Molling said in a phone interview from Sapiranga, a city in the Southern state of Rio Grande do Sul. “The tax agency told me that they aren’t creating new taxes, but only making adjustments to existing ones.”

Molling will meet with members of the country’s tax agency tomorrow to clarify the impact of the changes being proposed. He said he expects the Lower House to vote on the bill next week.

--Editors: Andre Soliani, Richard Jarvie

To contact the reporter on this story: Maria Luiza Rabello in Brasilia Newsroom at

To contact the editor responsible for this story: Joshua Goodman at

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