São Paulo – This Friday (23rd), the Brazilian minister of Finance, Guido Mantega, said the country’s Gross Domestic Product (GDP) should grow by 4% next year. “We must take the unfavourable international scenario into account, but we will grow nevertheless,” said the minister during the 30th National Industry Forum Meeting, at the regional office of the National Federation of Industry (CNI), in São Paulo. According to him, the United States economy is expected to rebound.
Mantega said that in the next few days, the government will launch a major investment program to improve the country’s ports. According to him, next year the economy will be underpinned by both private and public sector investment. He believes investment will be up 8% in 2013.
The minister called on business community leaders to back up the government’s proposal to lower electricity tariffs, a measure that has garnered widespread criticism from concession-holder companies. According to him, the reduction can help lower production costs.
Mantega also said the lowered payroll taxes will be made broader. Right now, 45 sectors are benefited, as they are no longer required to pay the 20% payroll contribution to the National Social Security Institute (INSS) and a rate of revenues to compensate. The measure is in effect for an undetermined period of time.
He also pledged the support of businessmen to the proposal the government is submitting to the Senate to change the rules of the Tax on the Circulation of Goods and Services (ICMS). To the minister, the measure may be passed in March or April next year. He said that initially, the states may incur some loss, but he guaranteed the federal government will take compensatory action.
*Translated by Gabriel Pomerancblum
