Brazil Delays Beverage Tax Increase
- Sep 26, 2014 | Gail Cole
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.”
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