Author: Bianca Ribeiro

Source: Valor Online - SP - 16/10/2009

SÃO PAULO - The main concern of the Brazilian business community for the coming year is with the tax burden. A survey by the American Chamber of Commerce (Amcham) with Ibope with more than 500 businessmen from companies of all sectors and sizes in the country shows that 74% cite this issue as a matter of concern for 2010.

The second most cited item, by 57% of respondents, has to do with the country's legal framework, legislation and regulation of sectors of the economy. Although 81% of businessmen are betting on high GDP next year, half of those surveyed put the risk of economic slowdown as the third biggest reason to worry in 2010.

Given the different dynamics of the recovery in developed countries, many economists and analysts still do not completely rule out the possibility of a recurrence of the international crisis, which would also bring uncertainty to the local economy. This explains the fact that the fourth biggest concern for the coming year is related to a possible recession in the USA.

When asked about obstacles to business development, entrepreneurs again mentioned the tax burden as a fact of greater weight on a scale of 0 to 100, classifying the variable as an average of 24,5.

"The problem is not the tax burden, but the tax system, which generates low returns to society and increases production," says Paulo Godoy, president of the Brazilian Association of Infrastructure and Base Industries (Abdib), who was present at the disclosure of research.

The tax complaint is an old one, but it is noteworthy that concerns about education and qualification of labor appear as the second major obstacle for entrepreneurs, weighing 22,6%. In a selected base of survey respondents linked to the Human Resources (HR) sector, 46% stated that their companies will be affected by the "talent blackout" in technical areas and 37% of them plan to invest significantly in specialization training.

This situation illustrates the need, according to Godoy, for the country to train around 200 thousand technicians by 2014 to face energy, oil and infrastructure projects needed by the country.

When asked especially about whether bills pending in Congress arouse caution because they have an effect on their business, 36% said yes, 24% answered no, but the majority (39%) could not say. Among those affected by matters that are yet to be voted on, 54% were especially interested in tax reform and 23% of them mentioned concern about labor reform.

Interestingly, the behavior of the exchange rate does not appear on the list of barriers or concerns of these entrepreneurs. Even so, some of the most affected sectors continue to complain about the effect of a cheap dollar for competitiveness in the international market.

For the president of Abdib, the declining trajectory of the American currency in the domestic exchange creates problems and it will be necessary for the government to generate sectorial compensations. "The best way to minimize this effect is to segregate sectors with greater problems and create specific actions to increase their competitiveness with exemptions", he ponders.

(Bianca Ribeiro | Value)