Brazil's Congress approves spending cut measures, caps tax credit for companies

BRASILIA (Reuters) -Brazilian Congress on Tuesday approved a bill that includes spending-containment measures and limits on companies' use of tax credits, which were previously struck down when a presidential decree expired without a vote. KEY DETAILS o The text, which was approved by Congress' lower house in October and by the Senate on Tuesday, now awaits ratification by President Luiz Inacio Lula da Silva. o The bill defines that tax credit compensations unrelated to a taxpayer's economic activity will not be accepted. o It also adds controls on the granting social benefits to fishermen during periods of fishing restrictions. CONTEXT o The approved measures were initially part of a broad executive order signed by Lula earlier in the year that Congress let expire, putting the government in a fiscal impasse. o The measures could generate about 25 billion reais ($4.70 billion) in savings for the public accounts, according to a lawmaker aligned with the administration. (Reporting by Bernardo Caram; Writing by Andre Romani and Fernando Cardoso, Editing by Natalia Siniawski)