Brazil aims to save up to $345 billion on pensions in 10 years: Guedes

Brazil's Economy Minister Paulo Guedes attends a ceremony at the Brazil's state-run oil company Petrobras in Rio de Janeiro
Brazil’s Economy Minister Paulo Guedes attends a ceremony at the Brazil’s state-run oil company Petrobras in Rio de Janeiro, Brazil January 3, 2019. Picture taken January 3, 2019. REUTERS/Sergio Moraes

January 23, 2019

DAVOS, Switzerland (Reuters) – An overhaul of Brazil’s pension system could save between 700 billion reais and 1.3 trillion reais ($185-345 billion) over the next 10 years, Economy Minister Paulo Guedes told Reuters in an interview on Wednesday during the World Economic Forum.

Guedes also said Brazil’s new government is aiming to lower the country’s total tax burden to 30 percent of gross domestic product in four years, from 36 percent currently. As part of the tax reform, Guedes said he is considering a “brutal” cut to the corporate tax rate to 15 percent, from 34 percent now, which would be offset initially by taxing dividends.

(Reporting by Mark Bendeich; Editing by Brad Haynes; Editing by Christian Plumb)

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