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  • Jan 30th, 2010
  • Comments Off on Brazil to end tax breaks, reduce stimulus
Brazil's government has no plans to renew tax breaks that have helped automakers and home appliances manufacturers boost sales as there is no need for the additional stimulus, O Estado de S. Paulo said on Friday, citing comments from Finance Minister Guido Mantega.

A reduction on industrial taxes on refrigerators, stoves and washing machines will end this weekend, already a sign of the government's exit strategy on several measures taken last year to lift the economy from recession, the daily said. "The fiscal stimuli are being disabled and coming to an end," Mantega told reporters in Switzerland, where he is attending the World Economic Forum, according to Estado.

"We think that if the economy is growing, it doesn't need the help from the State anymore." Mantega said that industrial output in Brazil had likely contracted between 5 percent and 6 percent in 2009 from 2008, but the outlook is for growth in 2010, Estado said. The country should add about 1 million new payroll jobs this year and some industrial sectors may experience a lack of qualified workers as the economy expands, he added.

Copyright Reuters, 2010


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