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Brazil may end tax breaks for auto industry

Brazil may end  tax breaks for auto industry

Brazil's largest newspaper says that the government is threatening to suspend auto industry tax breaks in a bid to persuade car makers not to lay off workers.
Brazil's government reduced its value-added tax on car sales at the beginning of this year amid slumping sales, and in turn asked the industry to not lay off workers.
But the Folha de S.Paulo newspaper reported Friday that the tax may be reintroduced early August, a month ahead of schedule.
The paper says Brazilian Finance Minister Guido Mantega will meet next week with representatives of the Brazilian subsidiary of General Motors Co. to discuss the auto maker's possible dismissal of close to 2,000 workers.
The Finance Ministry and General Motors confirmed the meeting, but declined to comment on what will be discussed.

Updated : 2021-10-17 23:53 GMT+08:00