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National Survey Shows That Tax Burden And Bureaucracy Are Among The Biggest Obstacles To The Growth Of The Brazilian Industry.
A survey by the National Confederation of Industry (CNI) revealed that 70% of industrial entrepreneurs point out tax payments as the main villain of the so-called Brazil Cost. Right after that, the difficulty in hiring skilled labor is mentioned by 62% of respondents.
Other cited obstacles include the difficulty in financing the business (27%), legal and regulatory insecurity (24%), and a lack of fair competitiveness (22%).
The survey was commissioned to the Nexus Research Institute and interviewed 1,002 entrepreneurs from small, medium, and large industries across all regions of the country, between July 14 and August 7, 2025.
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In addition to these factors, the respondents also pointed to access to basic inputs (20%), difficulty in innovating (14%), poor infrastructure conditions (12%), access to public services (10%), low international integration (4%), and difficulties in starting, restarting, or closing businesses (3%).
CNI Launches Campaign On The Brazil Cost
The survey is part of the new campaign “Brazil Cost,” launched this Monday (15) by the CNI. The initiative aims to show the impact of this set of problems on the routine of companies and the lives of consumers, as well as to propose ways to overcome inefficiencies.
The term “Brazil Cost” emerged in the late 1990s to describe the structural, bureaucratic, and economic difficulties that raise companies’ costs, harm investments, and compromise the country’s competitiveness.
“Every year, we waste over 20% of the Brazilian GDP by not addressing structural difficulties, such as taxes, financing, training people, and infrastructure,” said CNI President Ricardo Alban. According to him, this amount is equivalent to all state spending on public servants in 2025.
Direct Impact On Consumers
The survey showed that 77% of entrepreneurs believe that the Brazil Cost increases final prices paid by consumers. In the Northeast, this perception is even higher: 93% of respondents stated that the problem results in significant price increases.
In the South, this index reaches 87%, followed by the Southeast (78%) and North/Central-West (76%). For 64% of entrepreneurs, the impact of the Brazil Cost has increased in the last three years, contributing to price increases. Therefore, 78% consider reducing this cost a strategic priority for companies.
Main Factors That Increase Costs
The survey also compared the perceptions of Brazilian entrepreneurs with the reality of wealthy countries. According to the respondents, the factors that most increase international competitiveness include paying taxes (66%), financing the business (66%), and starting or closing a business (60%).
“We need to reduce the Brazil Cost to promote the competitiveness of the industry and create a more efficient business environment, boosting Brazilian industry in both domestic and international markets,” said CNI Vice President Léo de Castro. According to him, this would allow Brazilians to access cheaper products and improve their quality of life.
When asked about the risks of not addressing the problem, entrepreneurs pointed to the increase in bankruptcies and business closures (24%) as the main consequence, followed by economic crisis and recession (19%) and loss of competitiveness (10%).
Reduction Of Interest Rates And Labor Lawsuits
The survey also addressed measures that could stimulate investments in the industrial sector. For 77% of entrepreneurs, there would be an increase in investment levels if the interest rate on loans for companies were reduced by half.
Among them, 31% stated that investment “would increase a lot,” and 46% said it “would increase.” Additionally, 56% believe that the reduction of labor lawsuits would boost hiring.
Another 46% indicated that they would adopt the strategy of hiring more workers and investing simultaneously. “The survey reveals a strong consensus in the business sector: the reduction of labor lawsuits and interest rates is a direct trigger for a virtuous cycle of economic growth,” concluded Léo de Castro.
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