Despite Tax Break, Brazil Scientists Still Drowning in Red Tape

Researchers in Brazil will no longer be hit with big import duties on research equipment, following changes made to legislation last week. Previously, taxes were levied on imports regardless of whether they were bought or donated.

The new decision extends the scope of a 1990 law that exempted from import taxes any non-profit organisations registered with Brazil’s National Council for Scientific and Technological Development (CNPq) that were undertaking or funding research or teaching. Individuals are now also covered by the law, as long as they register with CNPq.


Stevens Rehen, a Brazilian researcher associate at the Scripps Research Institute, in La Jolla, California, United States, says the change in legislation will benefit Brazilian scientists.


But, he adds, high taxes are not the only difficulty they face when importing equipment. Bureaucracy is also a serious problem.


“I have to weigh every item I want to send to Brazil and get a consular invoice for each,” says Rehen.


In 2003, while at the Federal University of Rio de Janeiro, Rehen received donations of research equipment, including microscopes, computers and slide scanners, worth more than US$ 200,000.


Once the material arrived it was held by customs officials for six months, and the university was charged US$ 10,000.


The problem is not new. Rehen recalls that when the university ordered a machine for the laboratory he was working in as an undergraduate, it arrived more than six years after he finished his doctorate.


And, according to Rehen, when the material finally arrives, it is often outdated or broken. He says disagreements between different government agencies encourage the delays.


Brazil’s Internal Revenue Service, for instance, recently blocked some imports, stating that CNPq was in debt, he says. CNPq denied the statement.


In June, the government responded to these problems by launching an ‘easy import’ programme. But Rehen says that the situation still needs to improve.


“Different governmental sectors should have better communication between them,” says Rehen.


“New customs officials, with knowledge in biological areas, should be employed.”


He adds that researchers have a part to play too: “They need a better understanding of how the law works.”


Science and Development Network
www.scidev.net

Tags:

You May Also Like

Converted Tanker Boosts Brazil Offshore Oil’s Output

Petrobras, Brazil's government controlled multinational oil corporation, took a major step this week to ...

Brazil Says in US It’s Deserving of Investment Grade Rating

Brazil’s Secretary of the National Treasury, Joaquim Levy, stated that the Brazilian mission that ...

Hint of Scandal Involving Finance Minister Shakes Brazilian Market

Latin American stocks turned mixed on the day, as Brazil moved lower, while Mexico ...

Brazil to Indemnify Families of ”Politically Missing”

During the military dictatorship which ruled Brazil from 1964 to 1985, a number of ...

All Congress Leaders in Brazil Knew About Ruling PT’s Bribe Money

Brazilian ruling PT’s (Workers Party) former secretary general Silvio Pereira confessed that all top ...

Latam’s Main Furniture Fair Opens in Brazil

Thirty foreign buyers from Latin America, Europe and the Middle East are participating in ...

Bad Times at Brazil’s Suzano Papel e Celulose

Brazil’s Suzano Papel e Celulose, one of Latin America’s largest integrated producers of pulp ...

Brazil Central Bank’s Chief Sees GDP Growing Over 5% This Year

The most recent weekly analyst survey of the Brazilian Central Bank  shows Brazil’s economy ...

Brazil’s Lula Wins Votes in the South, the Opposition’s Stronghold

Brazilian President Luiz Inácio Lula da Silva has again taken the lead over his ...

Brazil’s Embraer Sells 50 Jets to US’s Republic Airways for US$ 2.1 Bi

Brazilian aircraft manufacturer Embraer said on Wednesday it has reached an agreement to sell ...