Brazil will extend a payroll tax cut to about 10 new industries, including paper and pulp producers as well as pharmaceutical companies, in a move that will cost the government about 7 billion reais a year, a government official familiar with the initiative said.
Finance Minister Guido Mantega plans to announce the measure intended to help boost economic growth tomorrow, said the official, who asked not to be named because he isn't authorized to discuss the issue publicly. To compensate for part of the loss in tax collection, the industries benefitted will have to pay a levy on revenue.
Section 240A of the Tax Administration Act, 2011 (as amended) requires that all tax practitioners register with a recognized controlling body before 1 July 2013. It is a criminal offense to not register with both a recognized controlling body and SARS.