Brazil's PT Loses CPMF Vote

Brazil's PT Loses CPMF Vote


The PT, Brazil's governing party, suffered a political setback Wednesday evening when the senate voted to end the CPMF tax, which is applied to financial transactions. The result of the close and highly politicized vote is a gaping BRL40bn hole in the 2008 budget, which will likely be patched up with adjustments to the other revenue components and possibly some cuts in spending. The CPMF accounts for 7% of the federal government's revenues, and is equal to 1.4% of GDP, according to Credit Suisse

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