Brazil to spur innovation with tax cuts, credit breaks

The Brazilian government will offer tax cuts, reduced payroll costs and credit breaks to companies that invest in innovation, Science and Technology Minister Marco Antonio Raupp announced. The “policy aims to encourage businessmen to play a major role” in research and development in the areas of science and technology, Raupp said on Friday. Companies willing to spend more on innovation will be rewarded with such incentives as tax breaks and favorable credit lines, he added. The Brazilian government currently invests 0.61 percent of the country’s Gross Domestic Product (GDP) in innovation, more than the private sector, which invests 0.55 percent of the GDP. But with the new stimulus package, the government hopes to close the gap over the coming years. Earlier last week, Brazilian President Dilma Rousseff met with the country’s most important industrial leaders to assess the challenges the private sector faces in fostering innovation and discuss ways to overcome them. Among the topics discussed were the importance of investing in innovation, developing infrastructure, and reducing the tax burden on private companies. Rousseff is also seeking partnerships with other countries. Earlier this month, she traveled to Germany, where she met with Chancellor Angela Merkel on strengthening bilateral relations in the fields of science, technology, research, and innovation.