BRASILIA May 31 Brazil's government expects to
raise tax revenue by 13 billion reais ($4 billion) this year
with a new tax refinancing plan created by decree on Wednesday,
a source with knowledge of the matter said.
A previous tax refinancing plan that expired on Wednesday
had tougher rules and the government estimated it would raise an
additional 8 billion reais.
The new refinancing program allows taxpayers to have
discounts on fines and interest charges that were not allowed by
the previous program, the source added, asking for anonymity to
discuss the matter freely.
Taxpayers who joined the previous tax refinancing program
are allowed to adhere to the new one, the source said.
Companies and individuals will be allowed to pay tax debts
in up to 15 years. If shorter payment periods are chosen,
taxpayers may have up to 90 percent cut on interest charges and
50 percent on fines.
Brazil Finance Minister Henrique Meirelles said earlier on
Wednesday the new tax refinancing program may have a future
negative effect on tax revenue but only by 2019.
($1 = 3.2262 reais)
(Writing by Tatiana Bautzer; Editing by Bill Trott)