On the final day of 2021, Brazil’s far-right President Jair Bolsonaro issued a provisional decree establishing a two-year earnings tax vacation on plane leasing. The thought was to chop airways’ prices and, due to this fact, push airfares down. In September of final yr, flight costs had risen 56 p.c over the 12 months prior, ending the yr with 18-percent inflation. Nonetheless, the measure precipitated an sudden and unfavourable impression on Brazil’s seemingly unconnected chemical substances trade.
In keeping with fiscal accountability legal guidelines, the Brazilian authorities can not sacrifice tax income with out compensating for the measure with price range cuts or tax hikes in different areas….
Entry all of The Brazilian Report
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