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Brazil hikes ATM fees by 1,600%

January 2, 2014

Brazil's finance ministry has increased the tax on citizens' debit card withdrawals abroad from the current 0.38 percent to 6.38 percent in the hope of controlling the current account deficit. The move will close a six percent gap in tax levels between debit and credit cards. 

According to a report by Bloomberg, the ministry issued a statement that said the tax will increase government revenues by an estimated 552 million reals ($236 million) per year by eliminating the option to use debit cards as a cheaper payment option abroad.

"This measure prevents one payment method from being undermined by others because of the tax structure," the ministry said on its website.

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