Brazil Scraps Higher Beer and Beverage Tax Before World Cup

Global Business

World Cup fans can relax. A planned tax hike on certain drinks has been postponed by the Brazilian government until after the tournament.

Beverage suppliers however are apprehensive the increase will affect Brazil’s already high costs of doing business in Brazil.

The cold drink tax was intended to raise almost $700 million U.S. dollars as part of the government’s efforts to increase revenue and shore up its finances after Standard & Poor in March downgraded Brazil’s credit rate to one level above junk.

CCTV’s Lucrecia Franco reports from Rio de Janeiro.

Brazil Scraps Higher Beer and Beverage Tax Before World Cup

Brazil Scraps Higher Beer and Beverage Tax Before World Cup

World Cup fans can relax. A planned tax hike on certain drinks has been postponed by the Brazilian government until after the tournament. Beverage suppliers however are apprehensive the increase will affect Brazil's already high costs of doing business in Brazil. The cold drink tax was intended to raise almost $700 million U.S. dollars as part of the government's efforts to increase revenue and shore up its finances after Standard & Poor in March downgraded Brazil's credit rate to one level above junk. CCTV’s Lucrecia Franco reports from Rio de Janeiro.