Brasília – The federal government of Brazil is considering making changes to the legislation governs Export Processing Zones (EPZs), the Brazilian minister of Development, Industry and Foreign Trade Fernando Pimentel said this Monday (28th). According to the minister, companies are required to earn 80% of their revenues from exports and that rate must be lowered because it is too high.
Furthermore, the government may establish sector-oriented EPZs based on the vocations of each region. “The economic reality has changed, the legislation needs to be reassessed,” said Pimentel. The EPZs are free zones meant to attract predominantly export-oriented companies by providing them with tax-, exchange rate-, and administration-related benefits.
The minister said none of the 30 EPZs created in Brazil has become operational. He believes the reason may be the existing obstacles in legislation. “The rate of revenues required to originate from exports is too high. In some of the regions, the local conditions have not been favourable. During this half of the year, we will find a better suited model by negotiating with the mayors. There is no point in creating an EPZ without ascertaining what the vocation of that particular region is,” he said.
The minister Fernando Pimentel gave his statement during the National Meeting with New Mayors, in Brasília.
*Translated by Gabriel Pomerancblum
