The term "Brazil's cost" is about the legal overheads, which are much higher than anything due to corruption (which does, indeed, increase the cost of doing business).
The largest component is cascading taxes. There are some rules which allow you to get a discount on taxes of products you sell based on taxes of the components you bought, but in general each step in production and distribution will pay taxes on the incoming values including all previous taxes. That means that you look at a product in a store and think that the price includes 18% state taxes which doesn't sound so bad. But if you could trace it back through the supply chain all the way to mining the raw materials you would see that about 60% of the price is tax.
This, by the way, leads to the ironic situation where poor people pay way more taxes than rich ones even though the law is supposed to implement "progressive taxes". So the poor person is in the 0% income tax bracket but spends nearly everything they earn on stuff with hidden 60% taxes in them. The rich person is in the 35% income tax bracket but only a fraction of that income goes to products while much of their expenses have little to no taxes.
Other sources of "custo Brasil" are losses in transport due to bad infrastructure and crime, having to hire extra people to deal with complex regulations, costs due to delays and things like that.
The largest component is cascading taxes. There are some rules which allow you to get a discount on taxes of products you sell based on taxes of the components you bought, but in general each step in production and distribution will pay taxes on the incoming values including all previous taxes. That means that you look at a product in a store and think that the price includes 18% state taxes which doesn't sound so bad. But if you could trace it back through the supply chain all the way to mining the raw materials you would see that about 60% of the price is tax.
This, by the way, leads to the ironic situation where poor people pay way more taxes than rich ones even though the law is supposed to implement "progressive taxes". So the poor person is in the 0% income tax bracket but spends nearly everything they earn on stuff with hidden 60% taxes in them. The rich person is in the 35% income tax bracket but only a fraction of that income goes to products while much of their expenses have little to no taxes.
Other sources of "custo Brasil" are losses in transport due to bad infrastructure and crime, having to hire extra people to deal with complex regulations, costs due to delays and things like that.