Measures to tackle costly bureaucracy

Brazil Cost refers to the web of red-tape and related factors hampering productivity and is a key deterrent to those who do business in the country. This issue of LS Brazil Outlook discusses recent initiatives by the administration to address two causes of Brazil Cost.

Proposals sent to Congress alleviate high taxes and charges associated with the payroll; and create a framework for settling tax disputes. These changes were proposed by provisional measures, which require Congress approval. Investors often ask what happens to transactions entered under a provisional measure that fails to be approved; this question is clarified in this issue.

Finally, we also discuss the idea – reportedly under review by tax authorities – of fostering financing for infrastructure through specific tax incentives.