February 21, 2017 / 6:51 PM / in 9 months

Brazil's Temer has no plans to revive CPMF tax -minister

BRASILIA, Feb 21 (Reuters) - The Brazilian government will not back a plan to revive an unpopular tax on financial transactions, known as CPMF, as proposed by a lawmaker in its coalition, the minister in charge of relations with Congress said on Tuesday.

Minister Antonio Imbassahy said the government had no intention of increasing Brazil’s already high tax burden at a time when the economy is struggling to emerge from a two-year recession.

A tax reform bill drafted by congressman Luiz Carlos Hauly, a member of President Michel Temer’s coalition, proposed the revival of the tax as well as the creation of a value added tax.

Hauly said they would replace a series of other taxes, including some state taxes, that make Brazil’s tax system one of the most complicated in the world.

His bill was meant to serve as the basis for Temer’s promised tax reform to simplify a taxation system that is considered a drag on growth of Latin America’s biggest economy. (Reporting by Alonso Soto; Editing by Bernard Orr)

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