Brazil’s Tax Burden Is Preventing Industry from Investing More

In April, entrepreneurs in the manufacturing sector were less optimistic about overall investments in their sector than they were in April, 2005. This finding is part of April’s Conjunctural Survey of Manufacturing Industries, released this Thursday, May 18, by the Getúlio Vargas Foundation.

The survey shows that 16% of the 1,043 entrepreneurs who were interviewed intend to invest less. In April, 2005, this percentage amounted to 8%. 55% plan to invest more, compared with 65% in April, 2005.

When investments on fixed assets (purchases of new equipment, factory expansion, etc.) are considered, the outlook is similar: 55% of those interviewed this April intend to make this type of investment, as against 65% in April, 2005.

The reason given by 49% of the entrepreneurs for investing in fixed assets is the need to expand production. This was the second best result in the historical series that began in 1998. The best was in April, 2005, when 52% of the entrepreneurs interviewed presented this justification.

Historically, according to the survey, "it is only in years in which growth prospects are good that this response option has been the one most frequently mentioned by the companies."

The research data reveal that 34% of those who were interviewed informed that the tax burden keeps the sector from investing more. Uncertainty about the demand for their products was considered by 29% of the entrepreneurs as an important factor limiting investments by the manufacturing sector.

Agência Brasil

Tags:

You May Also Like

12,000 Brazilian Landless Present Four Demands to Government

The agribusiness, the orthodox economic policy, and the own nature of the Brazilian State ...

RAPIDINHAS

The first thing that strikes you in Rio is the color, masses of it ...

Bolivians Are Becoming Beggars in Brazil’s Streets

The increase in Bolivian immigrants in Brazil is one of the social consequences of ...

Brazil Calls Artisans to Create Souvenirs for the Pan-American Games

The project Panorama Carioca – Rio de Janeiro Central for Creation of Objects, developed ...

Brazil and G4 Will Try New Approach for Reforming UN

The group formed by Brazil, India, Japan, and Germany (G4) is expected to draft ...

Amapí¡ Is Back on the Map of Gold in Brazil

The northern Brazilian state of Amapá is once again one of the golden regions ...

LETTERS

The first cases of AIDS in Brazil were diagnosed in São Paulo and Rio ...

Portugal Company Has Energy Plans for Brazil Including Wind Power

Portuguese energy sector company Energias de Portugal (EDP), is discussing with the Algerian Sonatrach ...

Brazilian Cattle Ranchers Losing Money Despite Growing Exports

Brazilian beef exports totaled US$ 295.8 million in June, 33% more than in June, ...

Brazil & Neighbors Are Beefing Up Their Armed Forces. No Arms Race, They Say

Brazil, its Latin American neighbors and US officials may deny it, but there is ...