CNI Presents 8 Unprecedented Infrastructure Proposals for the Next President: Increased Investment in Industry, Tax Reductions, Transportation Regulation, Airport Privatization, and More.

National Confederation of Industry (CNI) Wants More Investment in the Sector and Its Proposals Were Presented to the Presidential Candidates in a Meeting

The National Confederation of Industry (CNI) met with presidential candidates at the end of the first semester of 2022. The meeting aimed for the CNI to present its investment proposals in the industry and infrastructure sector, related to transport, airport privatization, reduction of taxes associated with production, among others.

At this meeting, more than 1,200 representatives from the industry were present, in addition to the presidential candidates Simone Tebet (MDB), Ciro Gomes (PDT), and Jair Bolsonaro (PL). The CNI presented a total of more than 20 proposals, 8 of which were exclusively aimed at the national infrastructure sector. Want to know what the proposals are? Keep reading!

Learn More About the Dialogue with the Presidential Candidates and the CNI in the Video Below

Brazil Needs to Advance in the Transport and Infrastructure Sector with Tax Reductions and Investment, According to CNI

The CNI conducts studies in the industrial sector and presented some results of its studies during this meeting with the presidential candidates. According to the studies conducted, Brazil needs to increase investment in transport from 0.65% to 2% of GDP (Gross Domestic Product). In this regard, experts pointed out that this investment is necessary to enhance competitiveness in the national logistics sector through proper cargo flow.

Moreover, investment in infrastructure would improve imports and exports, making processes much faster, which would generate more jobs. The CNI pointed out that injecting money into the transport and energy sectors is strategic to position Brazil as one of the best economies in the world. To that end, 8 main proposals were presented to guide how this investment could yield results.

Energy Sector Needs Tax Reductions to Contribute to Infrastructure

CNI specialists pointed out during this meeting that in the energy sector there is a need to reduce the taxes that weigh on it. After all, Brazilian consumers pay one of the highest electricity bills in the world, ranking second among the countries that export the most to Brazil.

To put it in perspective, only Italy surpasses Brazil concerning the value of electricity tariffs. Therefore, Brazil is ahead of major developed countries such as Japan, Germany, France, China, South Korea, and the United States. In this sense, it is worth noting that the United States has an electricity tariff that is 62% lower than that established in Brazil.

“Improving the economic environment also requires modernizing and correcting deficiencies in infrastructure. In recent years, successful concessions and privatizations have increased investments and brought significant improvements in the area. But we need to go further, with regulatory measures and the creation of an environment that attracts investments to the sector.”

Robson Braga de Andrade, CNI President, in a speech during the meeting with presidential candidates (2022).

Discover the 8 CNI Proposals in the Areas of Infrastructure, Transport, and Energy for Brazil

As mentioned earlier, the CNI presented more than 20 proposals in various sectors, with 8 of them aimed at infrastructure, transport, and energy. Check out the 8 proposals:

1 – Resolve the issue of unfinished works, that is, stalled projects. This is a major problem in the national scenario, as, according to the Ministry of Economy, there are over 20 contracts halted;

2 – Merge the National Agency for Land Transport (ANTT) with the National Agency for Waterway Transport (ANTAQ) to optimize regulation and service quality. The integration between these large agencies would allow for better transparency in charges and improved regulation of taxes;

3 – Allow the private initiative to manage certain stretches of waterways through grants;

4 – Prioritize stretches with a greater number of geographical irregularities within government investments in infrastructure;

5 – Make the process of reactivating deactivated or inactive railway stretches faster and easier;

6 – Continue with the plan to privatize national airports to stimulate better management;

7 – Modernize the electricity sector: reduce costs and increase competitiveness;

8 – Reduce sectoral charges on the electricity bill, lower the rates of some charges, and progressively transfer the subsidies embedded in the CDE to the Treasury.

Want to know the other proposals suggested to the presidential candidates? Then click here to learn more.