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.