Brazilian lawmakers approved legislation that may boost fiscal revenue by providing incentives for citizens to repatriate fortunes, handing the government a win in its push to shore up the nation’s finances.
The bill allows Brazilians to bring money back into the country by paying a fee while averting tax-evasion charges. The measure is part of Finance Minister Joaquim Levy’s program of tax increases and spending cuts that is designed to narrow the budget deficit. The legislation passed by 230 votes to 213.
The proposal now heads to the Senate and, if approved, may boost fiscal revenue by 100 billion reais ($27 billion), according to government estimates. That would be a step forward for Levy after a shrinking economy and dissent in Congress thwarted his efforts to raise revenue and curtail expenditures. The administration in 2016 wants to post the first budget surplus before interest payments in three years.
Brazil Energy Insight 
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