Mantega announces yet another stimulus package for Brazil's economy

Wednesday, September 17th 2014 - 04:20 UTC

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The tax breaks are part of a stimulus program adopted by President Dilma Rousseff as she seeks a second four-year term in the Oct. 5 balloting

“We want to make Brazilian industry more competitive and reduce juridical insecurity” said Mantega after meeting CNI representatives

Finance Minister Guido Mantega presented on Monday a package of tax measures aimed at stimulating Brazil's economy less than a month ahead of the presidential election.

“We want to make Brazilian industry more competitive and reduce juridical insecurity,” he said after meeting in Sao Paulo with representatives of the powerful CNI business confederation.

The changes include extending to all industries a reduction in the rate of tax on overseas profits from 34% to 26%. Until now, that benefit has been available only to firms in construction, services, food processing and the beverage sector.

Mantega also announced that a program providing subsidies to exporters of manufactured goods is to be made permanent, with the levels of support adjusted on an annual basis.

The tax breaks are part of a stimulus program adopted by President Dilma Rousseff as she seeks a second four-year term in the Oct. 5 balloting.

Brazil, Latin America's largest economy, is currently in a technical recession after two consecutive quarters of negative growth.

A report released Monday by the Organization for Economic Cooperation and Development said Brazil's economy would grow by just 0.30% this year as the world's largest economies recover at a slower rate than initially expected.

Brazil's GDP expanded by 7.5% in 2010, but the economy posted tepid growth of 2.7% in 2011 and just 1% in 2012 before rebounding with a gain of 2.3% in 2013.

Categories: Economy, Politics, Brazil.

Tags: Brazil, Brazil tax breaks, Dilma Rousseff, Guido Mantega.

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ChrisR
The Liar “Mantega also announced that a program providing subsidies to exporters of manufactured goods is to be made permanent, with the levels of support adjusted on an annual basis.”

Or until this lot are thrown out and the next disaster-in-waiting changes it all and slaps an environmental tax on everything.

Still, the madness that is Brazil will continue unabated.

First World economy: ha, ha, ha.
Sep 17th, 2014 - 11:41 am 0
313toBioBio
Industries working with Venezuela and Argentina are in shambles. Commodity prices like corn are in the toilet. This is how it ends for his model, he announced his resignation last week and more magic tricks to buy the election..probably with the help of putin.
Sep 17th, 2014 - 03:01 pm 0
Jack Bauer
““We want to make Brazilian industry more competitive and reduce juridical insecurity,” says Mantega...and the Dumboass Dilma.
What never ceases to amaze me is that these incompetent idiots only realize what they should do - or should have done years ago - when the noose is around their neck. Until the Federal Government restructures the current taxation system with a simpler, fairer one, the country will never go ahead. If you start a business here, the moment you start to turn a profit, you can be sure the Authorities” will tax you out of existence. That's the main reason why tax evasion is so widespread.
Sep 17th, 2014 - 08:44 pm 0

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