* Beer prices seen rising 2.15 pct on Monday
* Proposed rates cut after job, investment pledge
* New taxes to make up for levy cuts for industry
BRASILIA, Sept 28 Brazil will raise taxes on
beer and brewers on Monday, part of plans to recover revenue
lost when levies were cut on manufacturers earlier this year as
part of a plan to kick-start the economy, Brazil's tax authority
said on Friday.
The taxes are expected to cause the retail price of beer to
rise an average 2.15 percent on Monday, Carlos Alberto Barreto,
head of the tax agency, told reporters in Brasilia.
The tax increase, though, will be less than expected after
the government agreed to reductions in proposed rates. In
exchange brewers such as Anheuser-Busch Inbev SA agreed
to employment and investment targets.
Brazil's government in April slashed taxes on a wide range
of products and reduced levies and payroll taxes on companies in
the auto, textile, plastics and other industries in an effort
to kick-start an economy that slowed to a near-standstill last
To make up for some of the lost revenue, the government said
it would raise taxes on beer, alcohol and tobacco.
The tax on a can or bottle of beer will rise to 10.5
percent, less than the originally proposed 10.93. The
industrialized products tax and two social levies will rise by 2
percent every six months for six years.
Previously the government had sought to raise taxes by 6.25
percent a year for four years.
By reducing its initial proposals the government will forgo
76.3 million reais ($37.6 million) this year and 401.1 million