Skip to comments.Brazil tax cuts, credits throw lifeline to industry
Posted on 04/03/2012 12:42:31 PM PDT by Oldeconomybuyer
Brazil's government unveiled a new package of tax cuts, low-cost credits and other relief for ailing industries on Tuesday, seeking to resurrect a once-booming economy struggling to regain momentum.
The measures were announced the same day that fresh data showed signs of life in Brazilian industry after a prolonged slump. Analysts, though, cautioned that the latest policies fail to tackle the overall tax burdens, heavy bureaucracy and lack of investment that have long held back Brazil.
The government said it will cut payroll taxes to spur hiring in sectors as varied as textiles and plastics to the automotive industry.
The government will also stimulate domestic industry through government purchases and inject 45 billion reais ($24.6 billion) into the coffers of state development bank BNDES, which provides subsidized loans for Brazilian companies and is the main source of long-term financing in Brazil, especially for much-needed infrastructure projects.
(Excerpt) Read more at reuters.com ...