IMF: Brazil needs more progressive tax system, less budget tightness

Brazil should focus on pursuing a tax reform that enhances progressivity, rebuilding fiscal buffers, and reducing budget tightness to make room for more public investment, the International Monetary Fund (IMF) cautions.

RIO DE JANEIRO, BRAZIL - In the document released on Wednesday, September 22, the Fund's experts say Brazil needs a broad and more progressive reform of its tax system - contrary to the income tax reform proposed by the government of President Jair Bolsonaro, which does not help progress, according to analysts.

In its report on Brazil, the IMF also states that public debt should decline this year and remain stable, but warns that uncertain prospects may weigh negatively in the short term.

The institution suggests that the government should adopt a more robust medium-term fiscal framework that can strengthen . . .

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