BRASÍLIA: Brazil will not scrap an exemption from taxes on agricultural commodity exports in the world’s largest sugar, coffee and soybean exporter as part of its social welfare reform, a senior member of the economic team told Reuters on Tuesday.
Eliminating the exemption, which cost the government 5.3 billion reais ($1.67 billion) in lost revenue last year, was weighed as an option to reduce the widening pension deficit in a reform the government plans to present to Congress in coming weeks. “Our focus with the reform is on expenditures and not on revenues,” said the official who asked not to be named so as to speak freely. “That issue is off the table.” The official said there is a near consensus within the government on setting a minimum age of retirement of 65 years.
Brazil is one of only a handful of countries in the world that does not have a minimum retirement age. Pension payments depend on a formula that combines the age and the number of years worked.
