Brazil may offer credit lines ahead of 2027 tax reform and five-day workweek

  • Brazil’s Finance Minister Dario Durigan said targeted credit lines could support companies facing two reforms.
  • The labor change follows a 14-month transition, while the consumer tax reform starts in 2027.
  • Brazil’s Senate approved the five-day workweek amendment two days before Durigan’s interview.

Brazil could introduce targeted credit lines for companies affected by a consumer tax reform and the transition from a six-day to a five-day workweek. Finance Minister Dario Durigan said the support would focus on training, innovation and productivity. The labor change follows Senate approval of a constitutional amendment two days earlier and will take effect by the end of next year after a 14-month transition. A consumer tax reform approved in 2023 is scheduled to begin in 2027. Durigan described the labor reform’s impact on companies as minor but said business owners need government support. He also identified Brazil’s high interest rates as a problem if President Luiz Inacio Lula da Silva wins a new term in the presidential runoff on October 25 against Senator Flavio Bolsonaro, with Lula trailing in polls.

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