Taxes, labor and education key challenges in Brazil this year.
BY JOACHIM BAMRUD
Brazil may be the star of Latin America when it comes to foreign direct investments, but multinational executives warn of serious challenges that are impeding further investments.
“The cost of doing business in Brazil today is prohibitive,” says Leo Rodriguez, President of Latin America for Emerson and Emerson Process Management. “It has become the most expensive market to operate in Latin America. …Many [companies] that operate in Brazil have seen their payroll and related benefits costs skyrocket. Left unresolved, multinationals may opt to invest elsewhere.”
Key challenges include skilled labor shortages, education and the country’s infamous tax system. According to the Latin Tax Index from Latin Business Chronicle, Brazil has Latin America’s worst tax environment and in one area – number of hours necessary to comply with tax regulations – holds a world record.
See the full Q&A on Brazil’s Key Challenges
See also the Q&A on Brazil’s Outlook