Brazilian Senator Flavio Bolsonaro has promised to restore Perse, a major tax break program dedicated to the events and tourism sector, if he secures a victory in Sunday’s upcoming presidential runoff election. The pledge was announced in a social media post on Tuesday as the campaign enters its final stretch.
Perse was originally established in 2021 to provide financial relief to businesses within the events, tourism, and related industries that suffered severe economic damage during COVID-19 pandemic lockdowns. The legislative framework surrounding the initiative has evolved over the years, including amendments enacted during the administration of former President Jair Bolsonaro, the senator’s father.
The program was ultimately phased out in April of last year after the Brazilian Congress approved a 15 billion reais cap, equivalent to approximately $2.99 billion, on its tax expenditures. That termination formed part of broader fiscal efforts by left-wing President Luiz Inacio Lula da Silva’s administration to strengthen national public finances by curtailing federal tax exemptions.
Flavio Bolsonaro enters the final weekend of the campaign holding momentum after finishing unexpectedly ahead of Lula in the first round of voting earlier this month. Recent public opinion polls indicate that the challenger maintains a narrow lead going into Sunday’s decisive runoff.
While the proposal to revive Perse has drawn favorable attention from industry stakeholders, economic analysts have pointed to potential contradictions within the senator’s broader financial platform. The campaign has simultaneously promised wide-ranging tax cuts alongside a faster fiscal adjustment, a combination that critics note could prove challenging given that reduced tax revenues would constrain government income.
