According to reports in the national and international media this week, lawmakers in Brazil may attempt to breathe new life into the government's campaign to impose a financial transactions tax, despite an embarassing defeat on a similar levy late last year.
In December 2007, President Luiz Inacio Lula da Silva suffered a crushing political blow after his government failed to secure the votes needed to renew the CPMF financial transactions tax.
Despite negotiations with the opposition to secure an extension of the levy - which would have brought in an estimated US$22 billion in revenue this year - until 2011, the coalition government fell short of the 49 votes (out of 81) needed in the Senate for the tax to be renewed.
The 0.38% tax was imposed on various types of financial transactions, including cheques, transfers, and bank withdrawals, and revenue from it was traditionally used by the government to fund spending on infrastructure and health projects.
New proposals have suggested a 0.1% levy on all financial transactions starting next year, in order to help fund the health system.
According to a Bloomberg report on the matter, supporters of the planned levy are hoping to defeat its critics in a vote this week.
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