CNI Highlights Structural Reforms and Fiscal Policies as Keys to Lowering Brazil’s Business Costs
Industry leaders and a recent survey by the CNI underscore the necessity of structural reforms and fiscal policy adjustments to lower Brazil’s high business costs and boost economic competitiveness.
- • Ronaldo Caiado advocates revising labor, pension, and tax reforms to reduce Brazil's business costs.
- • CNI survey shows 29% of executives prioritize tax reduction and reform, while 22% focus on fiscal balance and public management.
- • Ricardo Alban highlights the need for fiscal and monetary policy coordination to stimulate productive development.
- • High tax burden, labor shortages, and high interest rates remain major challenges for Brazilian industry.
Key details
At a recent event hosted by the National Confederation of Industry (CNI), former Goiás governor Ronaldo Caiado called for urgent structural reforms to reduce Brazil’s notorious 'Custo Brasil,' the high costs associated with doing business in the country. Caiado stressed the need for comprehensive revisions in labor, pension, and tax legislation to improve Brazil’s economic competitiveness and create a more favorable environment for businesses and workers alike.
Supporting this call, a survey conducted by the CNI among 1,003 industrial executives shed light on the policy priorities perceived as critical for Brazil's economic development during the 2027-2030 period. Nearly 29% of respondents identified reducing taxes and advancing tax reform as top priorities, while 22% emphasized the importance of achieving fiscal balance and enhancing public management. This highlights the central role fiscal policies play alongside structural reforms in addressing Brazil’s high operational costs.
Ricardo Alban, president of the CNI, underscored the imperative of coordinating fiscal policy with monetary policy to stimulate productive development. Key challenges faced by industry leaders include Brazil’s elevated tax burden, shortage of qualified labor, and high interest rates. Concerning investment intentions, 41% of surveyed entrepreneurs plan to maintain current investment levels, and 28% intend to increase them, reflecting cautious optimism but also the existing pressures.
The CNI also advocates revisiting social benefit programs like the Continuous Cash Benefit (BPC) and opposes detachment of constitutional minimum funding for essential areas such as health and education, reflecting broader concerns about fiscal sustainability and public sector efficiency.
These discussions occur amid growing recognition within Brazil’s industrial sector that addressing systemic economic challenges through focused reforms and fiscal discipline is vital for reducing business costs and fostering long-term growth. The event and the accompanying survey signal a clear push from industry leaders for policy changes that can better align Brazil’s economic environment with global competitiveness standards.
This article was translated and synthesized from Brazilian sources, providing English-speaking readers with local perspectives.
