Brasília – A ruling from the Foreign Trade Chamber (Camex, in the Portuguese acronym) has been published on Brazil’s Federal Official Gazette this Thursday (10th), reducing the Import Tax on capital goods “with no domestically-made equivalents” from 14% to 2% Capital goods are equipment, facilities or services needed in the manufacturing of other goods or services.
The measure has been adopted as an incentive to investment in production: the lower cost of machinery and equipment encourages businessmen to step up investment. As a consequence, prices may drop, helping to keep inflation at bay.
The measure applies to cement making equipment, steel industry equipment and maize milling machines. The tax breaks are granted based on requests from the industry and covers 95 items, of which 84 are renewals and 11 are new requests. The benefit will remain in effect until December 31st this year.
*Translated by Gabriel Pomerancblum
