Brazilian Govt. Official Believes Economic Reforms May Result in Crypto Based Tax Evasion
- Economic conditions within Brazil are quite shaky — with the nation’s unemployment rate currently laying around the 12.5% mark.
- Owing to its various economic issues, many experts believe that crypto enabled technologies will be able to draw in many investors from across Brazil.
As per recent news stories currently circulating over the internet, Paulo Skaf — President of the Federation of Industries of the State of São Paulo (FIESP) — believes that the country’s recent tax reforms could result in citizens making use of crypto assets such as BTC, ETH to evade their tax responsibilities.
In regards to this entire development, Skaf recently spoke with a local media outlet called Folha de São Paulo. He pointed out that the upcoming financial reforms are ridden with loopholes which miscreants can easily make use of in order to evade their taxes.
On the subject, he was further quoted as saying:
“This would naturally lead to a migration to other forms of payment, such as cryptocurrencies. It's going to be unfair: those who trade in cryptocurrency don't pay, and those who trade in reals will pay.”
Brzailian President Jair Bolsonaro recently stated in a press release that his government was looking to simplify the nation’s federal tax structure by
“combining a number of existing taxes into one single levy.”
An article published by a local newspaper claims that the latest income tax changes will see five different ‘consumption taxes’ come together to form a single federal tax.
The Brazilian Ministry of Economy halved its growth forecast for the year (to around the 0.8% mark) because the regime has been struggling to raise funds for its various public initiatives. Last week, Bolsonaro stated that his government was being forced to slash its annual budget by a total of 2.5 billion reals ($661 million).