Brazil’s Senate recently passed a bill to extend tax incentives for the meetings and cultural events sector until 2026. The bill, which now awaits President Luiz Inacio Lula da Silva’s approval, aims to support the industry’s recovery from the pandemic. Here’s a simplified look at what the bill entails and its implications for Brazil.
The bill, previously approved by the Lower House, focuses on the PERSE program, which provides tax benefits to the events industry. These benefits, totaling 15 billion reais ($2.89 billion), will be available until the end of December 2026. The PERSE program covers various segments, including conferences, movie theaters, bars, and travel agencies.
In December, President Lula’s administration introduced an executive order to limit benefits across sectors, including a reduction in the PERSE program, aiming for its elimination by 2025. However, this move faced opposition from lawmakers, complicating the government’s fiscal goals. Subsequently, negotiations led to a compromise bill that received unanimous approval in the Senate.
Brazil’s Finance Minister Fernando Haddad explained that the extension of the PERSE program would result in an annual tax income loss of approximately 5 billion reais. This estimate is lower than earlier forecasts, aligning the program’s budget with previous years. Haddad expressed gratitude to the Senate and Lower House for their support in approving the bill.
The extension of tax incentives for the events sector signifies the government’s commitment to supporting economic recovery post-pandemic. By providing financial relief to businesses in the industry, Brazil aims to stimulate growth and job creation. Additionally, the bill’s passage demonstrates the importance of cooperation between government branches in addressing economic challenges.
The approval of the bill to extend tax incentives for Brazil’s events sector reflects efforts to bolster economic recovery and support businesses affected by the pandemic. As the country continues its recovery journey, policies like the PERSE program play a vital role in sustaining growth and fostering resilience. With the bill awaiting presidential approval, Brazil remains focused on overcoming economic challenges and building a prosperous future for its citizens.
