Brazil's Tax Turmoil: Wage Strike Stalls Revenue Efforts

Brazil's federal tax agency faces a strike over wage demands, affecting the government's revenue efforts. President Lula's administration needs tax settlements to improve finances. Fiscal uncertainties grow amid external risks from U.S. trade policies. Union demands wage adjustment for inflation since 2016.

The ongoing strike by Brazil's federal tax agency, driven by wage demands, poses a significant challenge to government revenue collection, according to the workers' union.

President Luiz Inacio Lula da Silva's administration has ambitious goals for bolstering public finances through projected tax settlements, but skepticism surrounds these targets as fiscal uncertainties mount.

With international pressures from U.S. trade policies and a nationwide economic slowdown under a tight monetary policy, the situation remains critical, urging a resolution to the stalled tax settlements exceeding last year's collections.

(With inputs from agencies.)