🧏 Tone-deaf government

Government gives up on new taxation rules after taking a social media beating. Two of Brazil's top three airlines want to merge. Two years on from Brazil's biggest corporate fraud scandal

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Gustavo Ribeiro & Letícia Arcoverde
January 16, 2025 • Reading Time: 3 minutes

Good morning! Brazilian tennis sensation João Fonseca was knocked out of the Australian Open in the early hours of this morning, losing in five sets to Italy’s Lorenzo Sonego. Fonseca’s performances in recent months have already earned the 18-year-old a legion of admirers and fans, which we will cover in more detail in Saturday’s Brazil Sports newsletter. 

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Government backpedals on revenue policy after social media backlash

Fernando Haddad and President Luiz Inácio Lula da Silva have opted to shelve new anti-tax evasion measures after facing a significant backlash on social media, highlighting the government’s struggle to control the narrative in the digital sphere. Photo: Ricardo Stuckert/PR

Fernando Haddad and President Luiz Inácio Lula da Silva have opted to shelve new anti-tax evasion measures after facing a significant backlash on social media, highlighting the government’s struggle to control the narrative in the digital sphere. Photo: Ricardo Stuckert/PR

Faced with growing criticism over his administration’s messaging, President Luiz Inácio Lula da Silva recently swapped out his press secretary, entrusting campaign manager Sidônio Palmeira with the challenge of improving the government’s communication strategies. 

  • Palmeira assumed the role amid a storm of public discontent, spurred by a policy rollout that quickly spiraled into a political crisis.

Context. At the center of the controversy was a new directive from the Federal Revenue Service to curb tax evasion and money laundering. The measure required financial institutions to report monthly transactions exceeding BRL 5,000 (USD 830) for individuals and BRL 15,000 for businesses. 

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