For those who favor more open trade (like Dr. John Welch - see Brazil Under Dilma Taskforce Report below), Brazil took a giant step back when it implemented a 30% tax increase on imported vehicles at the end of 2011. The measure was a cheap response to the strengthening real, which threatened local manufacturing as more people began to spring for better imported cars. Locally manufactured cars are fantastically expensive in Brazil, at over twice the price of the same car in any country that doesn't tax the bejebus out of manufactured goods.
Now, the government has taken a small step forward again by announcing a partial repeal, according to Bloomberg. After complaints, especially from Chinese manufacturers, the Brazilian government is now reducing taxes for foreign companies that are planning investment in local manufacturing in Brazil, and claiming a victory for having provided a srong incentive for foreign investment.
On the other hand, taxes, rather than improvements in productivity, are still the go-to tool to deal with competition problems. The deeper issue of a horrible tax regime, which is regressive and provides poor incentives, is also unlikely to receive the treatment it deserves in the near future.
Nenhum comentário:
Postar um comentário