On the final day of 2021, Brazil’s far-right President Jair Bolsonaro issued a provisional decree establishing a two-year revenue tax vacation on plane leasing. The concept was to chop airways’ prices and, subsequently, push airfares down. In September of final yr, flight costs had risen 56 % over the 12 months prior, ending the yr with 18-percent inflation. Nonetheless, the measure brought on an sudden and adverse affect on Brazil’s seemingly unconnected chemical substances business.
In line with fiscal accountability legal guidelines, the Brazilian authorities can’t sacrifice tax income with out compensating for the measure with price range cuts or tax hikes in different areas….