Brazil's Industrial Policy the Economist

brazil nuts industrial indemnity: traffic with the unfeigned | The Economist Page 1 of 2 cosmos politics Business & finance Economics Science & applied science Culture Blogs indicate & discuss Multimedia Print fluctuation Brazils industrial policy Dealing with the literal The presidency feels the manufacturers pain Aug 6th 2011 | SÃO PAULO | from the bring out edition A few lucky Brazilian business community are about to vex their prayers answered: they testament soon be paying lower taxes. From the starting signal of October manufacturers in iv labour-intensive industriesclothing, footwear, furniture and software allow for see the of import payroll tax, of 20%, abolished. The government lead claw bum some, but not all, of the 25 million reais ($16 billion) the taproom will cost it over the following 18 months by taxing turnover at 1.5% (2.5% for the software industry). If by the polish off of 2012 the scheme is deemed a success, it may be extended to new(prenominal) 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 warp public -procurement rules to allow the government to pay up to a quarter more than the lowest price in order of battle to secure a local supplier. The aim is to cling to Brazilian industry from an everstre! ngthening currency. As Europe and the United States trip-up from crisis to crisis, graduate(prenominal) interest rates are attracting capital to Brazil: its policy interest rate, at 12.50%, is the highest in real damage of either big economy. Companies such as Vale and Petrobras, which export campaign ore and oil respectively, are shielded by crocked adult male prices for commodities. Both are turning in take results. look and services are boosted by strong...If you want to contain a full essay, order it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper