Brazil May Change New Tax If It’s Ineffective, Lula Tells Folha - Bloomberg.com

Brazil May Change New Tax If It’s Ineffective, Lula Tells Folha - Bloomberg.com

By Laura Price

Oct. 22 (Bloomberg) -- Brazilian President Luiz Inacio Lula da Silva said his government is ready to change and may even drop a newly imposed tax on foreign purchases of fixed-income securities and stocks if the levy fails to curb the Brazilian currency’s gain, Folha de S. Paulo newspaper reported.

Lula also said his government will stick to a plan to tax savings accounts over 50,000 reais ($28,815), the newspaper reported. Brazil may consider different options within the plan to tax savings, Lula told the newspaper in an interview.

The president also said he ordered the country’s Finance Ministry to pay overdue tax rebates by December to help consumers, Folha reported.

To contact the reporter on this story: Laura Price in London at lprice3@bloomberg.net
Last Updated: October 22, 2009 07:23 EDT"