POST Online Media Lite Edition


Brazil should raise taxes, says IMF

Staff Writer |
Brazil should raise taxes to complement its fiscal reform, the International Monetary Fund (IMF) said.

Article continues below

In a report, the IMF said that the little room that the Central Bank has to bring down interest rates increased the need for the country to search for a balance in public accounts, both through spending cuts and a raise in taxes.

According to the report, raising taxes should complement the proposal to limit public spending sent to Congress last month. The IMF also advises Brazil to continue with structural reforms that allow the government to reduce compulsory spending, such as the social security system.

“In Brazil, there is limited room for monetary stimulus policies due to underlying inflationary pressures, and the fiscal consolidation should go on to reduce the large deficits”, said the IMF.

What to read next

Brazil to raise nearly $8 billion in tax revenue
Russian Finance Minister: Budget spending down or taxes up
Travellers allowed to bring $150 in goods in Brazil