Brazil targets Asian e-commerce giants, local companies in tax push

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Brazil targets Asian e-commerce giants, local companies in tax push
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Brazil will soon unveil tax measures, including a crackdown targeting Asian e-commerce giants and curbs on some company tax benefits, as it looks to raise more than 100 billion reais ($20 billion), Finance Minister Fernando Haddad said on Monday.

The government plans to release the measure by next week, together with legislation for its, which sets out limits on spending so President Luiz Inacio Lula da Silva's new administration eliminates the budget deficit next year.

The most significant impact will come from the government's move to seek approval from the Federal Supreme Court to disallow companies from receiving tax breaks from states on operating expenses, which result in them paying less federal tax. Additionally, Haddad said taxation of online sports betting is expected to generate between 12 billion and 15 billion reais for public coffers, more than double the initial estimate.

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