Government Raises IOF Rate to Fund New Bolsa Família in 2021

The increase, which will run until the end of the year, aims to increase the number of families benefiting from the social welfare program


President Jair Bolsonaro signed a bill raising the taxes on credit, stock market, and insurance transactions, or those relating to bonds or securities to finance the new Bolsa Família, the social welfare program, until the end of the year.

The annual rate will increase from 1.5% to 2.04% for legal entities. In the case of individuals, the rate increases from 3% to 4.08%.

According to Planalto, the measure should raise R$ 2.14 billion and increase the number of families served, from the current 14.6 million to 17 million.

The government hopes to postpone the precatory to fund the program, called Auxílio Brasil, in 2022.

It takes effect in November and is one of Bolsonaro's main hopes to boost his popularity.

Translated by Kiratiana Freelon

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