Brazil to cut tax to woo new telecoms investment

Brazil hopes to attract 70 billion reais ($44 billion) in investment in its telecoms sector in the next four years for the construction of fiber optic cable networks by exempting companies building them from certain taxes, Communications Minister Paulo Bernardo said.

The government would forfeit an estimated 4 billion in tax through the measure, Minister Bernardo said. President Dilma Rousseff has to decide whether to send the proposal to Congress or implement it immediately with a decree that would still require legislators' approval at a later date. The Communications Ministry will register companies seeking to obtain the reduction and only approve those willing to construct fiber optic cable networks in remote areas where existing communications networks are minimal.