Brazil cuts taxes in face of economic downturn

Tuesday, 31 March 2009, 02:20 Hrs
Printer Print Email Email
Brasilia: The Brazilian government enacted additional tax cuts Monday in the face of shrinking forecasts for gross domestic product (GDP) amid the global economic downturn.

The move came after the country's central bank Monday reduced its economic outlook for GDP to 1.2 percent for the year from 3.2 percent.

Finance Minister Guido Mantega announced a reduction of taxes on building materials and an extension of a tax break on cars. The government hopes to make up for the expected tax shortfall by increasing cigarette taxes to 30 percent.

According to the Banco Central, the industrial sector has been hardest hit by declining demand - with forecast growth of 0.1 percent instead of 3.4 percent. The bank also predicted inflation of 4 percent, revised downward from 4.7 percent.

"I would be satisfied if we had growth this year of 1 or 2 percent," Mantega said in announcing the tax moves in Sao Paulo. As recently as December, the government said a growth rate of 4 percent was possible.
Source: IANS
Ola raises Rs 400 cr for electric
Leading ride-hailing cab aggregator Ola on Friday said it raised Rs 400 crore from its early in..
SpiceJet plans aggressive
Budget passenger carrier SpiceJet plans to aggressively expand its international networks to fl..
Fossil Group sells smartwatch
Global watch and accessories maker Fossil Group has announced to sell its smartphone technolog..
GST rate cut to spur Bengaluru
The realty market in India's tech hub is set to grow as lower Goods and Services Tax (GST) rate..