BRAZIL: Government delays beer, soda tax rise - report
Brazil's brewers and soft drinks producers have been successful in delaying the planned tax hikes
Brazil has postponed planned changes to its beer and soda tax rules until after the World Cup, according to reports.
The changes, which will raise base tax rates on cold beverages, will now take effect in September and not next month, Bloomberg reported. The delay comes after lobbying efforts by The Coca-Cola Co and Anheuser-Busch InBev-owned AmBev, it was reported.
Tax authorities surprised industry watchers earlier this month when they announced the change in the federal tax laws that would have reportedly raised duty on beer and soda by an average 2.25% on 1 June. Analysts said they had expected the increase to come into effect in October.
It comes on top of a separate increase in beer tax last month.
A-B InBev CEO Carlos Brito admitted last week that volumes in Brazil would be affected by the rise.
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