"At 36% of GDP, the total tax burden is far heavier than in other developing countries. Payroll taxes, at 58% of salary, are higher than in any other big economy. Consumption, too, is heavily taxed, which explains why a Brazilian-made car costs up to 45% less in Mexico than it does in Brazil itself. High tariffs push up the price of imports even more. A smartphone costs about 50% more than in the United States. Most cars imported from outside the Mercosur trade block and Mexico attract not only a 35% tariff but an extra 30% on top of the normal sales tax. The complexity of the tax code also raises compliance costs. A mid-sized Brazilian firm takes 2,600 hours to prepare its annual tax return, almost ten times the global average" economist/news/special-report/21586678-why-brazil-offers-appalling-value-money-price-wrong
Posted on: Mon, 30 Sep 2013 23:22:28 +0000
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