Brasília – The Brazilian Foreign Trade Chamber (Camex, in the Portuguese acronym) has lowered the Import Tax on 105 products to 2%. The ruling was published on the Official Gazette this Friday (13th) and will remain effective until the end of 2012. According to the Brazilian Ministry of Development, Industry and Foreign Trade, the ex-tariff mechanism temporarily lowers the tax on foreign-made items linked to manufacturing incentives in the country.
The tax on capital goods not included in the exception list is 14%, and the rate on computer and telecom goods not included in the list is 16%. According to the ministry, the measure encourages investment in Brazil. The lowered rates cover 99 capital goods and six different codes of computer and telecommunication goods, under the ex-tariff regime.
A communiqué issued by the ministry also informed that forecasted investment relating to the new ex-tariff products should amount to US$ 1.6 billion, and equipment imports are estimated at US$ 318 million. The products will be imported mainly from India (34%), the United States (19%), Sweden (12%) and Germany (12%). The industries that will benefit the most from the tax breaks are petrochemicals, pulp and paper, and petroleum.
*Translated by Gabriel Pomerancblum
