Brasília – The Brazilian government has authorized the disbursement of 1.95 billion reals (US$ 1.12 billion) to states, municipalities and the Federal District, in order to encourage exports, under the Provisional Measure 501, published today (8th) in the Official Gazette.
The funds will be disbursed by the end of each month in equal instalments up until the end of the year. The National Treasury, however, may make the funds available beforehand, on the discretion of the Ministry of Finance. Out of the sum allotted to each state, the federal government will make 75% available to the state government, and 25% to municipalities.
The provisional measure provides that the funds will be divided among the municipalities according to their respective states’ individual shares in the distribution of the Value Added State Tax (ICMS) in 2010.
Within 30 days, the Ministry of Finance will set the rules for the municipalities and states to account for the actual use of credit by the exporters.
*Translated by Gabriel Pomerancblum
