Lula law could help Brazilian steelmakers
Brazilian president Luiz Inácio Lula da Silva has signed into law, a tax incentive that could have profound impact on steelmakers.
The law, nicknamed MP do Bem, was delayed for while to allow changes to be added. One of these changes includes suspension of tax payments for any company that exports at least 80% of its product.
Brazilian steelmaker CVRD has said that the new incentives could decrease costs on a proposed joint venture with South
Koreas Posco by 7.5% and could unstick a stalled joint venture with
Baosteel and Arcelor.
Overall, the new law is expected to boost
investments and exports in the country.