By, 2 Min ReadSAO PAULO/BRASILIA, July 14 (Reuters) – Brazil hopes to raise 100 billion reais ($19.64 billion) with a much-anticipated income tax reform proposal, Economy Minister Paulo Guedes said on Wednesday, as the government sharply raised its economic growth forecast for 2021. Still, the central bank, which operates independently of the ministry, said earlier on Wednesday that Brazil’s economy shrank in May, surprising economists who had expected it to grow.The IBC-Br economic activity index, a leading indicator of GDP, fell a seasonally adjusted 0.43 percent in May, surprising economists who had expected it to grow. Currently, dividend income is not taxed in Brazil. The reform has been brought to Congress, which will debate it and may make significant changes.$1 = 5.0907 reais Reporting by Camila Moreira and Ricardo Brito Editing by Paul Simao/n
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