Govt. mulls CPMF exemption for investment transfers

Brazil's government is considering exempting fund transfers between investments from the so-called CPMF financial transaction tax, Finance Minister Antonio Palocci said Monday. "This doesn't mean exempting all investments," Palocci said during a press conference. "The idea is that transfers between investments could be exempt from the CPMF." Palocci said the government still doesn't know how much it will stand to lose in tax revenues. The CPMF tax is currently charged at a 0.38% rate on all financial transactions. The tax is expected to boost public coffers by more than R$ 20 billion ($1 = R$ 2.87) this year. by Leonencio Nossa/Jose Ramos