BRASILIA, March 14 President Dilma Rousseff's
government plans to extend payroll tax exemptions to all
Brazilian manufacturing industries to boost investment and
growth in a stagnant economy, Trade and Industry Minister
Fernando Pimentel said on Thursday.
"We are exempting a large part of Brazilian industry and
hope to exempt all Brazil's manufacturing industry by the end of
this presidential term," Pimentel told reporters.
Since last year, Rousseff's government has given tax breaks
to dozens of industries, such as carmakers and other durable
goods manufacturers, to lower prices and bolster consumption. It
exempted specific industries from payroll taxes, including the
building sector, and plans to extend the exemptions to services.
Brazil has one of the most onerous and complex tax systems
in the word that has burdened industries and stifled investment.
Rousseff has tried to revive the economy with lower interest
rates, tax breaks and other stimulus measures but companies have
not responded as quickly as the government had hoped.
The government has been scrambling to reverse declining
investment in a once-booming economy that grew only 0.9 percent
last year, down from 2.7 percent in 2011 and 7.5 percent the
Rousseff unveiled a 32.9 billion reais ($16.72
billion)investment plan to spur industrial technology innovation
and raise the efficiency and competitiveness of Brazilian
industry. The plan includes 20.9 billion reais in low-interest
"We are committed to helping Brazilian industry and raising
the rate of investment in our country," Rousseff said.