Business

Why is Coca-Cola threatening to leave Brazil?

coca-cola brazil tax south america colombia
Coca-Cola wants more tax breaks

Brazil is quickly overcoming the truckers’ strike that nearly paralyzed its economy for 11 days in late May. However, some of its effects still linger. In order to convince truckers to get back behind the wheel, the federal government promised a number of subsidies – from lower diesel prices to a minimum freight reference table. But the government is cash-strapped and restrained by the federal spending cap. So, in order to pay for fuel subsidies, it had to cut expenses elsewhere – slashing the budgets of some ministries and reducing tax benefits for industrial sectors.

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