Cost of Brazil is R$ 1.7 trillion higher than the average of OECD countries, according to a study
The Brazil Cost reflects a set of structural, bureaucratic and economic difficulties that make new investments more expensive and hinder, in addition to harming the business environment. The survey mapped the additional burden that Brazilian companies have to pay to produce in the country, compared to OECD countries.
Vice President of the Republic and Minister of the MDIC, Geraldo Alckmin said that the study helps to understand the causes for the low growth of the Brazilian economy and what are the ways to solve the obstacles.
“We have a country of small growth. If we act on the causes, we will help to solve and have a sustainable and stronger growth. The Competitive Brazil Movement, through a study, shows where the problem is. It is not a single cause, but a set of factors that make Brazil expensive before it is rich.”
Mandala
The survey listed 12 axes that help form the Custo Brasil Mandala. The factor that most generates additional costs for Brazilian companies is related to job creation. Issues related to the skills of the workforce, labor charges and judicialization and labor risk burden the productive sector at a cost between R$ 310 billion and R$ 360 billion, every year.
The difficulties related to the payment of taxes generate, in all, an additional cost that varies between R$ 270 billion and R$ 310 billion. Thirdly, the study points out barriers related to the availability of infrastructure. Logistics costs and quality, environmental regulation, telecommunications infrastructure capacity, access to the sanitation network and urban mobility infrastructure form this factor, which impacts the economy by more than R$ 250 billion.
President of the Parliamentary Front for Competitive Brazil, federal deputy Arnaldo Jardim (Cidadania-SP) stated that the National Congress has approved measures that will allow the reduction of the Brazil Cost in the coming years, such as the sanitation framework, the new gas law, the railway authorizations law and the autonomy of the Central Bank. He stated that it is necessary to advance on other fronts, such as in the framework of the electricity sector, credit guarantees and the carbon market and in the bill that creates infrastructure debentures.
Jardim also said that he is confident in the approval of the tax reform, which intends to simplify taxation on consumption by unifying federal, state and municipal taxes.
“I believe that in June there will be the presentation of the report by Deputy Aguinaldo Ribeiro and we will approve, yes, the tax reform. I am very convinced that this theme has definitely matured in Parliament”.
Rogério Caiuby, executive director of the MBC, highlighted that, in relation to the last study, the Brazil Cost increased from R$ 1.5 trillion to R$ 1.7 trillion. According to him, the country needs to advance more quickly to reduce the obstacles that hinder the competitiveness of Brazilian companies on the international scene.
“Our companies are competitive. Most of them have the capacity to compete with any company from other countries, but this cost outside the company is a factor that needs to be tackled head on.”
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By Brasil 61
