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  • Comms tax breaks confirmed in Brazil

    2013 - 03.10

    The Brazilian government has confirmed that businesses in the communications industries are to receive tax cuts of between 20 and 80 per cent in order to encourage more investment in the expansion of the country’s networks.

    While those invested in the communications industry are set to benefit, existing investors in Brazil’s raw materials, such as those investing in sustainable forestry plantations through businesses like Greenwood Management, are also look set to enjoy the impact of the tax cuts as companies the communications firms will be required to purchase local materials and invest in the less developed areas of the country.

    Estimates suggest that the tax cuts will bring in somewhere in the region of 18 billion reals ($9.5 billion) over the next few years through the new communications developments, boosting not only the GDP of Brazil as a whole, but that of more neglected regions of the country that have previously been lagging behind.

    Investors have seen a run of good news relating to Brazilian taxes recently. Earlier this month the country cut federal taxes for a number of staple foods and cleaning products, which will enable manufacturers to cut prices by around ten per cent, hopefully boosting sales and returns.

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