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Industry in Brazil Calls for Tax Reform and Modernization of Electricity Sector to Boost Economic Growth

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BNN Correspondents
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Representatives from Brazil's industrial sector are urging the government to undertake a comprehensive tax reform and modernization of the electricity sector to boost economic growth. The Brazilian Confederation of Industry (CNI) has pointed out that the existing tax system is complex and inequitable, with excessive compliance costs that are detrimental to investment and job creation. To simplify the tax system and enhance competitiveness, they recommend implementing a value-added tax (VAT) that would reduce bureaucracy.

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In addition to the tax reform, industry leaders are advocating for the modernization of the electricity sector to promote the use of renewable energy sources and reduce energy costs. The CNI has proposed a series of measures to facilitate investment and improve the sector's regulatory environment. One of the suggestions is to privatize state-owned companies in the sector, which would enable the industry to become more efficient and cost-effective.

The CNI has also proposed creating a favorable regulatory environment that would encourage private investment in renewable energy. This could include measures such as tax incentives, subsidies, and favorable financing terms for investors in the sector. The government could also provide more support for research and development of new technologies that would help to increase the use of renewable energy and promote sustainability.

Furthermore, industry leaders have emphasized the importance of investing in infrastructure to improve transportation and logistics, which are critical components of the manufacturing supply chain. By enhancing transportation networks, businesses could increase their access to markets, reduce delivery times, and lower costs. This, in turn, would help to increase competitiveness and stimulate economic growth.

In conclusion, the Brazilian industry is calling for a comprehensive tax reform and modernization of the electricity sector to help drive economic growth. These reforms would simplify the tax system, increase investment, and encourage the adoption of renewable energy sources. By implementing these measures, Brazil could improve its competitiveness and attract more private investment to the country.

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