Brazil Announces $7.6 Billion Tax Package, Raises PIS/Cofins Import Tax

Brazil’s Finance Minister Joaquim Levy announced a series of tax increases that are expected to raise government revenue by $7.6 billion in 2015 and boost the government’s sagging credibility.

The PIS/Cofins import tax was increased from 9.25 percent to 11.75 percent, which will have a major impact on companies that rely on imports. The objective of this increase, announced Jan. 19, was to compensate for a supreme court decision in March 2013 that said it is unconstitutional to include the state value-added tax (ICMS) in the calculation of the federal PIS and Cofins taxes on imported goods and services.

Brazilian ...