By IANS/EFE,
Brasilia : The Brazilian government announced Thursday that it is expanding the reach of a 6 percent tax on loans from abroad as part of steps to halt the rise of the real against the dollar.
The Tax on Financial Operations was initially applied to foreign-originated loans with a term of two years, but will now also include three-years loans, according to a notice in the official gazette.
Surging dollar inflows have driven the value of the real to 1.70 to the greenback, making Brazil’s exports more expensive.
Despite the Brazilian Central Bank’s repeated interventions in the currency market, the real has climbed 8.19 percent so far this year.
It will not be levied on repatriated capital invested in Brazil or on remittances.
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