Brazil Politics: Lower House Votes to Reinstate Payroll Tax (1)

Brazil’s lower house of Congress on Wednesday backed legislation that gradually reverses payroll tax cuts. The approval happened on the Supreme Court deadline for the government and Congress to indicate measures to compensate for the 28 billion reais ($5 billion) in revenue losses from the levy reduction this year, according to the house website.

The bill proposes a three-year transition period to end the payroll tax exemption for 17 sectors of the economy. It also proposes charging the full pension tax rate in municipalities with up to 156,000 inhabitants starting next year.

Finance Minister Fernando Haddadsaid in a local ...