Brazil Won’t Raise Taxes, Promises Minister

Brazil’s Minister of Finance, Antonio Palocci, said that the government will pursue the commitment of not raising taxes higher than 2002 rates and will maintain a primary surplus equivalent to 4.25% of the Gross Domestic Product (GDP) in 2005.

During a press conference, the Minister said that the decision not to renew the arrangement with the IMF “does not mean abandoning the microeconomic reform agenda and the fiscal measures to control inflation and to stimulate external commerce.”


Palocci recalled that in order to reduce the tax burden, 21 important measures were taken last year, in the areas of real capital, long-term savings, and consumer goods prices.


He mentioned that the numbers are “the best in 20 years. We had the highest economic growth in the last 10 years. In addition, industrial production in 2004 was the highest in 18 years.”


The objective of the Brazilian policy, he added, is to keep reducing public debt, as has been occurring in the past months, with an increase in government savings and the implementation of social and structural measures.


According to the Minister, Brazil will pursue sustained growth with the positive evolution of the companies and the balance of external accounts. “The valorization of workers and the increase of family income are also a priority.”


Palocci said that the pilot project for infrastructure investments is not linked to possible arrangements with the IMF: “We have said that such projects can help to strengthen countries’ fiscal balances in the medium and long terms.”


ABr

Tags:

Ads

You May Also Like

US Tractor Maker John Deere Invests US$ 80 Million in Brazil

US-based agriculture equipment maker John Deere announced its intention to invest approximately US$ 80 ...

Brazilian Exports Grow 15% and Imports 23%

Brazilian exports added up to US$ 2.38 billion in the first four working days ...

Use of Humans as Guinea Pigs in Brazil Due to Faulty Translation

A mistake in the Portuguese version of a research project on malaria was presumably ...

Brazil’s JBS Files for US$ 2 Billion Initial Public Offering in the US

JBS, IPO, Wall Street Brazil-based JBS SA, the world's largest meat processor, filed for ...

Costs Down, Profits Up at Brazil’s Gol Airline

Brazilian airline Gol has released the its operations results for the second quarter of ...

Brazil Fines Forest Burner US$ 410,000

Brazil’s Ibama (Environmental Protection Institute) has slapped a US$ 410,000 (1,331,000 reais) fine on ...

Bargain Hunters Make Brazilian Market Rebound

Latin American shares turned higher, led by Brazilian receipts, which received the brunt of ...

Brazil’s Sweet Deals in the Middle East

Brazilian sugar exports to the Arab countries practically doubled between 2003 and 2004. Figures ...

Looking for Love

Documents required: By Janaina Gimael The Secretaria de Assistência Social (Social Assistance Department), an ...

Brazil and Mercosur Romancing the Arabs for the Money

Celso Amorim, the Brazilian Foreign Minister says that the agreement that is being negotiated ...