Brazil extends tax breaks to stimulate growth
Published: Tuesday | March 31, 2009
Brazil's government is extending a tax break on auto sales and cutting taxes on building materials to help stimulate the economy.
Finance Minister Guido Mantega also says the government is increasing taxes on cigarettes to bring in more revenue, and will exempt companies in the paper and pulp industry from paying income taxes.
Officials say they are counting on Brazil's domestic market to help the economy avert a recession - and hope the measures announced Monday will spark internal demand.
The announcement comes as the central bank lowered its growth forecast to 1.2 per cent this year, down from its December estimate of 3.2 per cent.
A weekly central bank survey of private economists is forecasting zero growth.
- AP
