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Brazil Delays Beverage Tax Increase

  • Sep 26, 2014 | Gail Cole

 No tax hike for now.

The Brazilian government has decided to delay a planned beverage tax increase for the second time this year.

A tax hike on beer, soda and other beverages was set to take effect in June but was postponed so as not to interfere with beverage consumption during the World Cup. Football fans, both Brazilian and those who traveled to support their teams, were undoubtedly thankful—especially given the extreme, thirst-inspiring heat.

The tax was then set to take effect in September but has now been further postponed. Finance Minister Guido Mantega has reportedly said a new tax model for beverages will be proposed “in early 2015.”

While this may be good news for Brazil’s thirsty, it places further strains on government finances, “already under strain after a series of tax breaks.”

Keeping up with tax changes can inspire a mighty thirst. Automated sales tax software helps quench it. Learn more.

photo credit: Jorge in Brazil via photopin cc

Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.