Brazil Automakers Back To Asking For More Tax Breaks -Report
April 14 2009 - 8:39AM
Dow Jones News
Brazil automakers are back to asking the government for more tax
breaks, the local business daily Valor Economico reported
Tuesday.
Jose Carlos Pinheiro Neto, vice president of General Motors do
Brasil Ltda., sent a request to Trade Minister Miguel Jorge for a
temporary exemption of the ICMS sales tax for auto parts the major
car companies buy.
The newspaper reported that Neto was looking for more breaks in
order to help with a severe drop in exports for GM and competitors.
Exports have declined by more than 50% year over year as the
financial crisis continues in Brazil's biggest auto markets.
On Monday, Jorge said that the government had "no plan B" to
help automakers beyond the success of its temporary cut in the IPI
industrial production tax, in affect since December.
-By Kenneth Rapoza, Dow Jones Newswires; 5511-2847-4541;
kenneth.rapoza@dowjones.com