LatinNews Daily - 23 February 2022

In brief: Brazil’s Guedes moots a tax cut

* Brazil’s Economy Minister Paulo Guedes has said that the government led by President Jair Bolsonaro is considering a 25% reduction to the IPI tax on industrialised products. Speaking during an event organised by bank BTG Pactual, Guedes said “Brazilian industry has suffered, for the last three, four decades, high taxes, high interest rates, and excessive labour burdens. We need to address these three questions, and we’re making a first step now, reducing the IPI by 25%”. Guedes said that the move is supported by President Bolsonaro and made possible by the federal state’s large tax take last year. “It’s a movement to reindustrialise Brazil,” he said. Questioned about the issue separately, the central bank (BCB) president Roberto Campos Neto warned that cutting taxes on industrialised products would not resolve the issue of inflation in the medium to long term. 

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