Brazil’s government reduced the IOF financial transactions tax on fixed-income exchange-traded funds to zero on Wednesday, to attract more investment to Latin America’s largest economy.
The IOF tax rate on those instruments had been charged daily and determined on a moving scale that fell over time.
Paulo Rogério Caffarelli, the finance ministry’s No. 2 official, announced the change at a press conference in Brasilia on Wednesday. (Reporting by Luciana Otoni; Editing by Steve Orlofsky)