Brazil's Finance Minister confirms studies on eliminating public transport fares
Brazil's Finance Minister Fernando Haddad confirmed on Tuesday that the government is conducting studies, at the request of President Luiz Inacio Lula da Silva, on a plan to eliminate public transportation fares nationwide.
Speaking on a government radio program, Haddad acknowledged the initiative, which surfaced in media reports last week and rattled markets amid concerns that Lula's leftist administration could loosen fiscal discipline ahead of next year's general elections.
According to the minister, the government is revisiting studies "to assess whether there are more appropriate ways to finance the sector."
"We know that public transportation in Brazil, especially in urban areas, is a key issue for workers. At the president's request, we are conducting a full assessment of the sector," he added.
Haddad also said he expects Congress to vote on a government measure changing the taxation of investment income, expected to raise 20.9 billion reais ($3.93 billion) next year.
The measure, which faces resistance among lawmakers, was published by the government in June with immediate effect but must be approved by both houses of Congress by Wednesday to remain valid.
According to the minister, the government is revisiting studies "to assess whether there are more appropriate ways to finance the sector."
"We know that public transportation in Brazil, especially in urban areas, is a key issue for workers. At the president's request, we are conducting a full assessment of the sector," he added.
Haddad also said he expects Congress to vote on a government measure changing the taxation of investment income, expected to raise 20.9 billion reais ($3.93 billion) next year.
The measure, which faces resistance among lawmakers, was published by the government in June with immediate effect but must be approved by both houses of Congress by Wednesday to remain valid.
