RIO DE JANEIRO, BRAZIL - The government is including in its proposed tax reform that withdrawals and cash deposits be taxed at an initial rate of 0.4 percent. The collection is part of the concept of tax on payments, which is being compared to the former Provisional Contribution on Financial Transactions (CPMF).

For debit and credit payments, the initial rate studied is 0.2 percent (for each end of the transaction, payer and recipient).

Both rates tend to grow after they are established since the government's goal is to use the new tax to gradually replace taxation on wages . . .

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