TechFlow news, June 6 — According to Bitcoin.com News, Brazil is considering taxing cryptocurrency transactions to offset the impact of a broader financial transaction tax (IOF) increase on the general population.
The idea was raised by Hugo Motta, Speaker of Brazil's Chamber of Deputies, ahead of a meeting with Finance Minister Fernando Haddad and Senate President Davi Alcolumbre. Motta opposed the overall tax hike, stating that Brazilian citizens cannot bear another tax increase, but expressed support for extending the tax to cryptocurrency transactions.
However, the Brazilian cryptocurrency industry has shown mixed reactions to the proposal. Vanessa Butalla, Vice President of Legal, Compliance, and Risk at Mercado Bitcoin, said the move could be legally questionable due to how Brazilian tax authorities currently treat cryptocurrencies, adding, "It’s like deciding to charge IOF on property purchases made for investment purposes."
Legal experts note that only legislation approved by Congress can redefine taxable events or include new asset classes within the tax scope.
