São Paulo – The Foreign Trade Board (Camex, in the Portuguese acronym), the Brazilian federal government’s policymaking agency, has lowered the Import Tax from 16% and 14% to 2% on 193 pieces of industrial machinery and equipment which are not manufactured in Brazil. The measure will remain effective until December 31st, 2014. The information was released last Monday evening (24th) by the Brazilian Ministry of Development, Industry and Foreign Trade, to which the Camex is linked.
According to a communiqué from the ministry, the tax break is meant to encourage investment, technological innovation and job creation. With the lowered tariff, the capital goods theoretically become cheaper for Brazilian companies to purchase.
The list covers 182 capital goods and 11 computer and telecom items. The main industries covered are civil construction, telecom, services, foodstuffs, mining and autos. The products included are mostly imported from China, United States, Italy, Germany and Netherlands.
The ministry also informed that the projects which will benefit include a Portland cement plant in the state of Pará, a mobile phone plant in São Paulo, oil and gas exploration services in Rio de Janeiro and iron ore processing and export in the state of Minas Gerais, which will increase.
The tax break was granted in the condition of ex-tariff, i.e. a regime which allows for the temporary reduction of the Import Tax on capital goods, computer and telecom items which are not manufactured in Brazil.
*Translated by Gabriel Pomerancblum
