The Brazilian Finance Minister announced a number of tax cuts, including financial transactions tax, known as IOF. According to this plan, foreign purchases of corporate bonds with maturities of over four years, and local equities, would be no longer be subject to IO. At present it is levied at rates of between 1% and 6% on a number of inbound and outbound foreign exchange transactions.
In case of the personal credit, the IOF rate will be cut by 0.5% to 2.5%, and on the other hand in case of the industrial products, tax on a number of home appliances, such as freezers and washing machines etc., will be reduced also.
