Lula Says Brazil Assessing ‘Permanent Solution’ for Tax Cuts

Lula Says Brazil Assessing ‘Permanent Solution’ for Tax Cuts - Bloomberg.com:

By Iuri Dantas

Nov. 3 (Bloomberg) -- Brazilian President Luiz Inacio Lula da Silva said the Finance Ministry and the country’s consumer products manufacturers are discussing a “permanent solution” regarding tax cuts on home appliances.

The government is proceeding with “caution” as declining tax collection this year won’t be allowed to endanger “social programs and investment,” Lula said in his weekly newspaper column published on the presidency’s Web site.

“A more permanent solution is being discussed by the Finance Ministry” and industry representatives, Lula said. “Caution is needed.”

Finance Minister Guido Mantega on Oct. 29 announced that the government had decided to extend tax cuts on energy- efficient appliances for three months and might consider additional measures, without elaborating.

To contact the reporter on this story:’ Iuri Dantas in Brasilia at idantas@bloomberg.net
Last Updated: November 3, 2009 09:54 EST"