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With less than six months to go before President Jair Bolsonaro puts his electoral popularity to the test in the hope of securing a second term, his government has thrown in the towel in its quest to approve any sweeping constitutional reforms. Instead, the head of state is focusing on smaller populist measures that do not require congressional approval and which could provide momentary jolts to the economy as we approach the election. At the center of this strategy is Brazil’s IPI manufactured goods tax, rates of which the domestic industry is desperate to see fall.
On Tuesday morning,…
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