(Adds second part of proposal)
BRASILIA, Aug 30 (Reuters) - Brazil's finance ministry is set to propose on Thursday a bill that would eliminate the "interest on equity" (JCP) in order to increase tax revenue, generating additional revenue of 10 billion reais ($2.05 billion) in 2024, two sources familiar with the matter said on Wednesday.
If approved, the measure would eliminate the power of companies to deduct payouts from their corporate tax obligations.
The ministry will also propose a measure to regulate the decision of the country's Justice Top Court (STJ) that limited federal subsidies originated from state tax incentives.
The STJ judgment would now apply and corporate tax discounts granted by states could no longer be used to reduce companies' taxable income for federal revenue purposes.
Such a measure would raise 37 billion reais in 2024, the sources said.
Reuters had
anticipated
in July that such measures were underway to increase public revenues and back the government's goal to eliminate its primary budget deficit in 2024. ($1 = 4.8890 reais) (Reporting by Bernardo Caram; Writing by Carolina Pulice; Editing by Sarah Morland and Leslie Adler)