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BRASILIA (Reuters) -Brazil’s Finance Ministry plans to lift the minimal cigarette value to offset losses from tax advantages granted to firms in some sectors and small municipalities, a authorities supply advised Reuters on Monday.
The hike is anticipated to be a part of a package deal to compensate for almost 26 billion reais ($5.03 billion) in income loss from the exemption of payroll taxes permitted by Congress in December, the supply stated.
Brazilians now pay 5 reais for a pack of 20 cigarettes. A hike would increase federal tax income on the product.
Finance Minister Fernando Haddad stated on Monday that measures to extend income are prepared and the federal government is contemplating whether or not to ship them to Congress this week or subsequent through an govt order.
The plan was reported earlier on Monday by native newspaper O Estado de S. Paulo, which stated the proposal would usher in 3 billion to 4 billion reais so different income sources could be wanted to make up for the loss.
($1 = 5.1706 reais)
(Reporting by Bernardo Caram; Writing by Marcela Ayres and Andre Romani; Enhancing by Richard Chang)
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