It was reported on 19 September 2012 that the Brazilian government has confirmed two tax measures for next year designed to reduce the tax burden on many businesses after an alarming fall in economic growth.
The government has approved plans to extend employer payroll tax exemptions to 25 key industries from January 1, 2013. In addition, electricity producers will be handed considerable tax cuts in the expectation that the cost savings will be passed on to businesses and homeowners, thereby cutting business costs, and boosting economic activity and consumer consumption.
Brazil’s economy had been one of the world’s star performers in recent years, and was growing at a rate of 7% as recently as 2010, highlighting its sudden reversal in fortunes.
