Brazil Government Considers Permanent Tax Cuts, O Globo Says

Brazil’s government is considering making permanent certain tax cuts that were implemented to spur the economy, local newspaper O Globo reported.

One of the reductions that would be made permanent is a 3 percent credit for companies that export manufactured goods, according to the newspaper. Aside from sparking growth, the tax cuts also would help control inflation, O Globo said

Brazil’s government will implement tax cuts of 85 billion reais ($43.2 billion) this year, which will include 40 billion reais in new stimulus for producers, O Globo said.

To contact the reporter on this story: Matthew Malinowski in Brasilia at mmalinowski@bloomberg.net.

To contact the editor responsible for this story: Sylvia Wier at swier@bloomberg.net.

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