Brazil planning to cut taxes on electricity to help reduce industry costs

Wednesday, May 16th 2012 - 01:07 UTC

Full article 5 comments

The Brazilian government has plans to cut and simplify taxes for electricity producers and distributors as part of a strategy to reduce Brazil's high business costs and stimulate its struggling economy, reports Reuters. Read full article

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Fbear
In what way will the ultimate consumer benefit? IF taxes are cut for producers and distributors, what guarantee is there that the saving will be passed on? I would like to see some specifics.
May 16th, 2012 - 04:08 pm - Link - Report abuse 0
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ChrisR
@1

You are correct to be sceptical that producers and distributors will keep back some of the money if taxes are removed.

They will most certainly do so because, like all South American countries the government is bloated with non-productive civil servants and taxes private companies until they howl to pay for them.

What is required is a fundamental shift in the ratio of government / private headcount.

Getting rid of the fiscal drag caused by government would suprcharge the economy with all the new workers now available and affordable by lower taxes.

Agreed, the pampered civil servants would not like it much to begin with as they would actually have to WORK for a living. Restricting the power of the unions to strike would also be required to prevent them destroying businesses.

I realise that this will be seen as heresy, but as an atheist, who cares?

I have, in my career, been on the management teams of large international businesses and do understand what is required to get Brasil where it says it wants to be: at the forefront of the worlds countries. It will never happen unless these sorts of changes are made.
May 17th, 2012 - 02:21 pm - Link - Report abuse 0
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Fbear
The president, whom I admire, DOES say all the right things. I just hope she follows through. I also realize that the congress is to blame for much of the problem.

Interesting what you say about civil servants having to actually work. I happen to know one whose stated philosophy is, “The less work you do, the fewer mistakes you will make.” And to think that we are called on to subsidize their lifestyles. Still, this governmednt bureaucracy, apart from being one of the most complex to negotiate, is little different in attitude from any other around the world.
May 17th, 2012 - 03:13 pm - Link - Report abuse 0
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ChrisR
@3

Never said it was any different elsewhere, but my comments still have validity.

The cnut Brown (self appointed PM of Britain) almost doubled the civil service, especially in areas which voted New Labour (WAF joke) and still could not manage to get an overall majority. Hence the pair of idiots in charge now.
May 17th, 2012 - 06:49 pm - Link - Report abuse 0
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Fbear
got it
May 17th, 2012 - 09:56 pm - Link - Report abuse 0
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