Brazil’s national currency, the Brazilian real, dropped to an all-time low on Friday morning as the spending cut plans announced by the administration of radical leftist President Luiz Inácio Lula da Silva failed to calm growing market doubts.
“The issue of income tax exemption, although it is everyone’s wish, is not on the agenda for now and can only happen if we have the fiscal conditions for it,” Pacheco said. “If we don’t, it won’t happen. But this is a discussion for the future, which will depend a lot on Brazil’s ability to grow and generate wealth without increasing taxes.”
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