Government and institution measures in response to COVID-19.
Government and institution measures in response to COVID-19.
Return to homepage | Last updated: 09 September, 2020
The Minister of Economy, Paulo Guedes, announced in March 26th that the economic stimulus package, closed by the Ministry of Economy, Public Banks and the Central Bank will be US$ 150 billion (R$ 750 billion), to face the economic impacts of COVID-19 in Brazil.
The volume of funds includes the following measures: a) loosening of the fiscal target above the previously forecasted deficit of US$ 24.8 billion; b) support for the most vulnerable population, with anticipation of the 13th salary (US$ 9.2 billion) and salary allowance (US$ 2.5 billion), transfer of PIS / PASEP to FGTS (US$ 4.3 billion) and reinforcement of Bolsa Familia (US$ 620 million); c) relaxation of labor laws to maintain jobs; d) aid for informal and self-employed workers (US$ 8 billion); e) extension of payment of taxes, FGTS and contributions reduction (US$ 6 billion); f) financial support to states (US$ 17.5 billion); g) financial support to the airline industry; h) expansion of liquidity in the markets, with the release of US$ 40 billion in compulsory deposits; i) support from BNDES and public banks (BNDES: US$ 11 billion + Caixa: US$ 15 billion + Banco do Brazil: US$ 25 billion); j) support for small and medium-size companies (US$ 8 billion); k) postponement of readjustment of pharmaceuticals products
Click here to see a comprehensive summary of jurisdictional tax measures and government reliefs in response to COVID-19.
Customs clearance
Export
Suspension of anti-dumping duties
Other measures
Of the total, R$ 179.38 billion will be allocated to funding and marketing credit lines and R$ 56.92 billion will be invested in infrastructure.
Main sources of information
Tax: Rodrigo La Rosa rodrigolarosa@kpmg.com.br
Restructuring: Alan Riddell – ariddell@kpmg.com.br
Head of Deal Advisory: Marco André Almeida - MAAlmeida@kpmg.com.br