Aurelia Butler

The report represents an early step in a reform considered crucial by President Luiz Inacio Lula da Silva’s administration. Lawmakers will now craft a formal text in greater detail to be put to a vote.Congressman Aguinaldo Ribeiro, the lawmaker in charge of the working group report, said the lower house of Congress would vote on a bill in the first week of July, citing a timeline approved by House Speaker Arthur Lira.According to the working group’s proposal, the reform would merge federal taxes on consumption – namely IPI, PIS, and Cofins – into one tax, while the state-level ICMS tax and municipal-level ISS tax would combine to form a separate rate.The working group’s report recognized the possibility of exemptions in the standard tax rates, including a reduced rate for some goods and services related to health, education, public transportation, regional aviation and rural production.The text also proposed the implementation of a different treatment of food items included in a government-designated list of essential products. Under the recommendations, tax collection would shift from the current practice based on where goods are produced to a system reflecting where goods are consumed. This adjustment is expected to benefit wealthier and more populous states, and the working group proposed a transition period of “some years” for implementation.”The transition will be made in such a way as to maintain the collection of current taxes as a proportion of GDP (gross domestic product). Under no circumstances will there be an increase of the tax burden,” the report said. More

(Reuters) – A look at the day ahead in Asian markets from Jamie McGeever.Chinese trade figures for May top the Asia-Pacific economic data and events calendar on Wednesday with investors keen to see whether April’s shock slump in imports is repeated, which will offer clues on the health – or otherwise – of domestic demand. Markets may get a tailwind from Tuesday’s global session – Wall Street ended higher and volatility fell to a pre-pandemic low, although the crypto world was rocked after the U.S. Securities and Exchange Commission filed a second major lawsuit in as many days against industry giants.First quarter GDP growth figures from Australia are also due on Wednesday, potentially giving the Aussie dollar and other local assets a nudge after the surprise interest rate hike from the country’s central bank on Tuesday.Analysts polled by Reuters reckon the economy grew by 0.3% from the previous quarter, and by 2.4% compared with the same period a year ago. Both would mark a slower pace of growth from the fourth quarter of last year.The Australian dollar could be in for a bout of profit taking on Wednesday after rallying strongly on Tuesday, a fourth straight rise, following the RBA’s rate hike and signaling of more to come. That’s the Aussie’s longest winning streak in a month, and the currency is up almost 1% this week. It has not appreciated two weeks in a row since January. Chinese trade data for May will be the main focus, especially imports, which have been sluggish for over a year. The scrapping of pandemic-era restrictions and lockdowns earlier this year was supposed to spur a surge in domestic demand, but that hasn’t happened. The surprise 7.9% slump in imports in April was a major red flag that the economic re-opening was not going according to plan. It was one of the main catalysts for investors turning bearish on Chinese assets and the economy in recent weeks.Economists polled by Reuters predict an 8.0% fall in imports for May, and a 0.4% decline in exports.The Chinese yuan slid to new low for the year through 7.10 per dollar on Tuesday. Further signs of a struggling economy will likely keep the yuan on the defensive, even if the overall trade surplus is relatively large.Overall, markets go into Wednesday in pretty fine fettle. The CBOE volatility index – the so-called Wall Street fear index – closed below 14.0 for the first time since February 2020.Here are three key developments that could provide more direction to markets on Wednesday:- China trade balance (May)- Australia GDP (Q1)- FX reserves – China, Japan, Indonesia (By Jamie McGeever) More

“We’ve watched carefully the election,” White House Indo-Pacific Coordinator Kurt Campbell told the Hudson (NYSE:HUD) Institute think tank. “This is a delicate phase in terms of the formation of a government.”The opposition Move Forward and Pheu Thai parties dominated in last month’s election in Thailand, dealing a resounding defeat of conservative parties backed by a royalist military that has controlled government since a 2014 coup.They have been seeking to form a coalition government with six other parties, but prime ministerial front-runner Pita Limjaroenrat faces an uphill battle to woo members of an unelected, conservative-leaning Senate to back him in a legislative vote on a prime minister expected by August.On Tuesday, Pita played down an effort to disqualify him over a stock ownership issue, insisting he violated no rules and that rivals were determined to keep him from the top job.The United States is seeking to boost ties with allies and partners throughout Asia at it pushes back against China’s expanding power, and Campbell said Washington wanted to sustain a strong bilateral relationship with Thailand, its oldest treaty ally in the region.”Many companies are invested there; we have strong military programs and engagements with the Thai armed forces,” he said. “I think it is undeniable that the politics of Thailand have been unstable and complicated,” he said, adding: “I think our goal would be to support an effective, stable, democratic government in Thailand and then work consequentially with it.” More