Brazil to Tax Paper Flood
- Share via
BRASILIA, Brazil — Inflation drives Brazilians to write more checks than almost anyone else in the world and now the government wants to tax that paper wave for billions of dollars.
Because having money in a checking account drawing interest beats carrying cash that is losing maybe 1% of its value every day, Brazilians write checks--a lot of them.
With inflation at 1,100% annually, Brazilians cashed 3.4 billion checks last year, the state-run Banco do Brasil reported, putting Brazil among leaders of check-writing countries.
Taxi drivers accept checks for the equivalent of $2 rides, and street vendors take them for a bag of popcorn. Want an ice cream cone? Write a check.
Demetry Alexandre, who runs a busy lunch stand at a Brasilia shopping mall, said, “People write checks for coffee, for whatever.
Sign up for Essential California
The most important California stories and recommendations in your inbox every morning.
You may occasionally receive promotional content from the Los Angeles Times.
