São Paulo – The Foreign Trade Chamber (Camex, in the Portuguese acronym), which is the federal government’s policymaking organization for the sector, has lowered the import tax on 330 types of machines and equipment which are not manufactured in Brazil. According to a statement released by the Brazilian Ministry of Development, Industry and Foreign Trade, the goal is to cut the cost of industry investment. Two resolutions on the issue were published on the Federal Official Gazette this Tuesday (31st).
The first resolution lists 322 capital goods whose taxes will drop from 14% to 2%, being 277 new items and 45 extensions. The second resolution sets forth a reduction from 16% to 2% in the tax charged on large-sized printers, and tax exemption on seven products relating to investment in digital TV technology. The tax breaks will remain in effect until June 30th, 2014, according to the ministry.
The rulings, according to the ministry, will lead to US$ 340 million in imports. The following industries will benefit the most: oil, autos, auto parts, railways, and mining. The main source countries are United States, Germany and Italy.
The projects in which these items will be used amount to a combined value exceeding US$ 7 billion, according to the ministry. Among them is a manufacturing plant with capacity for 200,000 vehicles a year in Rezende, in the state of Rio de Janeiro, a tyre plant in the city of Rio de Janeiro, a fertilizer manufacturing unit in Três Lagoas, Mato Grosso do Sul, and expansion works on the green line of the São Paulo metro.
Read the full resolutions and product lists on www.camex.gov.br/legislacao/interna/id/994 and www.camex.gov.br/legislacao/interna/id/995.
*Translated by Gabriel Pomerancblum
