Brazil seeks $3.25 bln tax break for telecoms

SAO PAULO,  (Reuters) – Brazil’s President Dilma  Rousseff will propose 6 billion reais ($3.25 billion) in tax  breaks over the next five years for the construction of  telecommunications networks, in an effort to keep the sector  booming despite the global financial crisis.

“The government is making an effort to improve the  conditions for investment … and reduce the effects of the  crisis,” Communications Minister Paulo Bernardo told Reuters in  an interview on Friday.

Bernardo said Rousseff would send a proposal outlining the  tax breaks to Congress within the next 30 days.

Rousseff’s government has announced a series of tax breaks  and other measures in recent weeks to try to shield strategic  industries from the impact of the global crisis.

Bernardo said that telecommunications investments are  considered especially critical as Brazil prepares to host the  2014 World Cup and 2016 Olympic Games. Some analysts have  warned that Brazil’s existing networks will need a major  upgrade in coming years to handle both booming domestic demand  and an influx of tourists for the sporting events.

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