Brazil's Industrial Policy the Economist

brazil nuts industrial constitution: traffic with the unfeigned | The Economist Page 1 of 2 human race politics Business & finance Economics Science & engineering science Culture Blogs indicate & discuss Multimedia Print mutation Brazils industrial policy Dealing with the hearty The presidency feels the manufacturers pain Aug 6th 2011 | SÃO PAULO | from the stigma edition A few lucky Brazilian businessmen are about to vex their prayers answered: they testament soon be paying lower taxes. From the starting signal of October manufacturers in quaternion labour-intensive industriesclothing, footwear, furniture and software allow for see the principal(prenominal) payroll tax, of 20%, abolished. The government lead claw keister some, but not all, of the 25 million reais ($16 billion) the step will cost it over the following 18 months by taxing turnover at 1.5% (2.5% for the software industry). If by the oddment of 2012 the sch eme is deemed a success, it may be extended to other industries and made permanent. The tax cut is the centrepiece of President Dilma Rousseffs long-awaited industrial policy, announced on marvelous 2nd.

It also includes a promise to act more quickly where imports involve dumping, and stricter checks on the origins of goods (Chinese manufacturers are rumoured to be evading anti-dumping tariffs by merchant marine via troika countries). A Buy Brazil policy will squirm public -procurement rules to allow the government to pay up to a quarter more than the lowest price in state to secure a local supplier. The aim i s to cling to Brazilian industry from an ev! erstrengthening currency. As Europe and the United States trip-up from crisis to crisis, richly interest rates are attracting capital to Brazil: its policy interest rate, at 12.50%, is the highest in real damage of both big economy. Companies such as Vale and Petrobras, which export urge ore and oil respectively, are shielded by crocked founding prices for commodities. Both are turning in take results. twist and services are boosted by strong...If you want to contain a full essay, order it on our website: BestEssayCheap.com

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