Brazilians traveling abroad aren’t going to be too happy with their credit card statements as of Saturday.
Brazilian officials announced the government has implemented a 6 percent tax increase from .38 percent to 6.38 percent for credit card purchases made by Brazilians traveling outside of the South American country. The surcharge went into effect Dec. 28.
The credit card surcharge, which also applies to cash withdrawals, hits during the summer holidays. Many Brazilians who have already left the country on vacation are in for quite a shock when they review their credit card statements.
In 2013, Brazilians spent an estimated $23.1 billion overseas between January and November, according to government figures. It was a 14 percent increase over the same period in 2012.
The rate hike is anticipated to raise an estimated $205 million (R$552 million) for government coffers in 2014. Especially, if Brazil is successful in its aim to encourage Brazilians to spend at home rather than overseas in order reduce the national budget deficit $72.7 billion and boost domestic industry.
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