Brazilian Industrial Policies: an essay about the payroll tax exemption

• Autor(a) principal: Meyer, Leandro
• Data de Publicação: 2015
• Outros Autores: Spolador, Humberto F. S., Lucinda, Cláudio
• Tipo de documento: Artigo
• Idioma: por
• Título da fonte: Revista Paranaense de Desenvolvimento (Online)
• Texto Completo: https://ipardes.emnuvens.com.br/revistaparanaense/article/view/751
• topic: Industrial policies. Payroll tax exemption. Deindustrialization.; Políticas industriales. Alivio de impuestos sobre nóminas. Desindustrialización.; Políticas industriais. Desoneração da folha de pagamentos. Desindustrialização.

The key purpose of this essay, through a strictly descriptive analysis, is to investigate the main features of the recent Brazilian industrial policies of which might explain minuscule results in terms of growth and competitiveness, focusing the discussion on the analysis of payroll tax exemption policy effectiveness. Considering the industry’s decreasing competitiveness on the economy, the discussion regarding the government policies is required to recover the sector’s competitiveness which has taken over the industrial policies relevance in the early 2000s. However, the results over the last 10 years on the industrial output share in the Brazilian economy are negligible. The payroll tax exemption policy effects is an illustrative example, since this policy reduces the amount of taxes charged on industrial corporation dramatically, then it presents the main characteristics used by other government policies throughout the time, being costly in terms of government revenues, with poor promotion to the public and private initiatives neither comparative advantages growth.