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Brazil unveils measures to bolster economy
02/12/2011
Brazil has announced a comprehensive raft of economic measures aimed at sustaining the health of the Brazilian economy in the face of the fall-out from the European economic turmoil.
Finance Minister Guido Mantega said that President Dilma Rousseff intends to prevent the global crisis from significantly affecting Brazil's economic boom, which has been responsible for bringing more than 25 million above the poverty line over the last decade.
"We won't allow the global crisis to contaminate the Brazilian economy," Mantega explained, adding that the new initiative will help 2012 start on an "upswing" and go a long way to ensuring 5 per cent economic growth over the course of next year.
The measures will include the elimination of the financial transaction tax - or IOF tax - on foreign purchases of Brazilian stocks and on foreign purchases of corporate bonds with maturities of more than four years. It is hoped that these measures will keep the inflow of foreign investment in Brazil at its current strength.
There will also be a reduction in the industrial tax on home appliances, such as stoves, refrigerators, freezers and washing machines, and 3 per cent tax rebate for exporters of industrialised goods.
Finance Minister Guido Mantega said that President Dilma Rousseff intends to prevent the global crisis from significantly affecting Brazil's economic boom, which has been responsible for bringing more than 25 million above the poverty line over the last decade.
"We won't allow the global crisis to contaminate the Brazilian economy," Mantega explained, adding that the new initiative will help 2012 start on an "upswing" and go a long way to ensuring 5 per cent economic growth over the course of next year.
The measures will include the elimination of the financial transaction tax - or IOF tax - on foreign purchases of Brazilian stocks and on foreign purchases of corporate bonds with maturities of more than four years. It is hoped that these measures will keep the inflow of foreign investment in Brazil at its current strength.
There will also be a reduction in the industrial tax on home appliances, such as stoves, refrigerators, freezers and washing machines, and 3 per cent tax rebate for exporters of industrialised goods.
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