Brazil: Beer and Soda Tax Hike Will Come After World Cup
- May 21, 2014 | Gail Cole
Brazil’s taxes on beer and soda were set to increase in June 2014. However, the government has decided to postpone the tax hike until September of this year—after the World Cup. Brazil’s Finance Minister Guido Mantega announced the delay last week, after meeting with executives from the beer industry.
According to Mantega, “We made an agreement that there would be no price increase during the Cup.”
Even without the tax hike, beverage prices have been on the rise since May of last year: “the beverage industry has raised beer prices by 23 percent and soda prices by 19 percent.” Delaying the imposition of higher taxes could minimize the impact on thirsty football fans and ease concerns over inflation. Said Mantega, “We are concerned about inflation remaining under control.”
The higher taxes on beer and soda are expected to raise 1.5 billion reais through the end of 2014.
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