For a decade, Brazilians who carry out banking transactions have been living with the inconvenience of the CPMF, an acronym that stands for Provisional Contribution on Financial Transactions.
This tax was created in January 1997, from bank transactions, such as checks, transfers between accounts, deposits, among others, which are activities carried out daily throughout the country, at first its purpose was to assist the National Health Fund, which is now destined for the Fund to Combat Poverty.
Similarly to the CPMF, the DRU (Untying of Federal Revenue) was created, another item elaborated in the Fernando Henrique government Cardoso, in order to collect a higher percentage of taxes for the Union, automatically decreasing the value of the States and Counties. The monetary tranquility of the current government is subordinated to the financial contribution of the CPMF and DRU, it is clear that if they are not fixed or extended, the government loses a high amount of revenue.
Eduardo de Freitas
Source: Brazil School - https://brasilescola.uol.com.br/economia/dez-anos-cpmf.htm
