MercoPress. South Atlantic News Agency
Brazil props defence industry by reducing taxes, but demands more exports
Brazilian President Dilma Rousseff signed a bill exempting defence companies from taxes for five years. The measure is geared to prop the defence industry and reduce the share of imported equipment for the armed forces. Read full article
Comments
Disclaimer & comment rulesWorryingly, Brasil is getting more and more like Argentina - making up individual solutions for the specific sectors.
Oct 03rd, 2011 - 09:30 pm - Link - Report abuse 0This will create compounding difficulties as each new 'initiative' moves the country further and further from coherent, all-embracing policy.
Sticking-plaster approaches to policy never work and, in this blatant case, foreign competitors counter-bidding for export contracts will claim unfair competition in order to remove Brasil from the process.
Do you even know whether they haven't been aided by their governments, those foreign corporations? I doubt they don't. Brazil the is one of the worse countries when it comes to promoting its exports, specially in the manufacturing sector. I don't doubt other countries have been playing this game for far longer.
Oct 03rd, 2011 - 11:50 pm - Link - Report abuse 0This is good news for Brazil, specially that more and more (because of the so called credit crisis in Europe and in the US) foreign defence companies are interested to work with Brazilian defence companies in Brazil.
Oct 04th, 2011 - 03:14 am - Link - Report abuse 0Yup, there are billions and billions to be earned through getting Brasil to buy into develop world armaments industries.
Oct 04th, 2011 - 12:51 pm - Link - Report abuse 0Arms race throughout South America using foreign top-technology.
Many Brasilian companies will now develop a military equipment arm in order to avoid paying taxes.
OK, state support for national armaments industries is common, but normally less 'in your face' than Brasils chosen mechanism
And my posting @ #1 still remains an even bigger structural problem.
A double whammy for the Brasilian tax-paying man in the street.
Money diverted from social provision to armaments, and higher taxes to compensate for industrial tax exemption.
One country like a Brazil can and need a strong defense industries. Our economy is giant and need military support.
Oct 04th, 2011 - 09:09 pm - Link - Report abuse 0Commenting for this story is now closed.
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