Brazil to extend tax breaks to all manufacturers

Reuters, 03/14/2013

President Dilma Rousseff’s government plans to extend payroll tax exemptions to all Brazilian manufacturing industries to boost investment and growth in a stagnant economy, Trade and Industry Minister Fernando Pimentel said on Thursday.

“We are exempting a large part of Brazilian industry and hope to exempt all Brazil’s manufacturing industry by the end of this presidential term,” Pimentel told reporters.

Since last year, Rousseff’s government has given tax breaks to dozens of industries, such as carmakers and other durable goods manufacturers, to lower prices and bolster consumption. It exempted specific industries from payroll taxes, including the building sector, and plans to extend the exemptions to services.

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Brazil to extend tax breaks to constructions sector

Reuters, 12/04/2012

Brazil will extend payroll tax exemptions to the country’s construction sector, Finance Minister Guido Mantega said on Tuesday, the latest in a flurry of tax breaks to local businesses aimed at supporting a lackluster economy.

The Brazilian economy grew much less than expected in the third quarter, surprising private economists and even the government.

Brazil’s biggest publicly listed homebuilders, including PDG Realty SA, Cyrela Brazil Realty SA and Gafisa SA, have struggled over the past year as demand cooled and projects overran budgets and timetables.

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