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Brazil stocks

easier

SAO PAULO: Brazil stocks took a hit by close on jitters over a government proposal to reform corporate taxes that would include a tax on capital gains on foreign investment in the stock market, traders said on Tuesday.

The Bovespa index of the 54 most-active shares ended down 3.26 percent at 43.678 points. Turnover was 239 million reais ($251.5 million).

Late Tuesday Finance Minister Pedro Malan and Planning Minister Jose Serra said the government would propose that capital gains on foreign investment in Brazil's stock market to be taxed at a flat rate of 15 percent.

"The market fell in anticipation of the government proposal to create a tax on foreigners' capital gains," a senior trader said.

Until now, foreign investment in Brazil's stock market has been exempt from taxation.-Reuter