Brazil will grant tax breaks to exporters that will cost the government about 6 billion reais ($2.5 billion) next year as policy makers struggle to pull Latin America’s largest economy out of recession.
The government next month will start giving exporters a 3% tax credit on their export revenue, Finance Minister Guido Mantega told reporters in Sao Paulo today after meeting with representatives of companies from Fiat SpA to Cia. Siderurgica Nacional SA. The government last year suspended the so-called Reintegra tax credit program, saying at the time it cost too much in lost fiscal revenue. Read more here.