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And, according to Rehen, when the material finally arrives, it is often outdated or broken.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

EU Needs to Use Its Trading Muscle in Favor of Third World

In a speech at the London School of Economics on February 4, 2005, the ...

Fearing Brazil’s Foot and Mouth Disease Uruguay Steps Up Sanitary Controls

Uruguay stepped up border sanitary controls in anticipation of "unpleasant" surprises following at least ...

A Brazilian Memory: The Day I Snapped Presidents Jânio and Juscelino Together

In the mid-1950s, I was an economist at the American Embassy in Rio de ...

5% of Brazil’s GDP Goes on Red Tape and Then You Have Corruption

A survey by the Rio de Janeiro American Chamber of Commerce, in Brazil, found ...

Brazil’s Lula Races Ahead, But Alckmin Says He Will Keep the Mike Tyson Style

Geraldo Alckmin, the opposition candidate running against President Luiz Inácio Lula da Silva in ...

Among Best Countries to Do Business in LatAm Brazil Is Number 9

Brazil ranks ninth in a 19-nation list of the best countries to do business ...

Hint of Scandal Involving Finance Minister Shakes Brazilian Market

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

Brazil: Pizzaiolo? You Should Mind Your Tongue, Mr. President!

Before he assumed the presidency, President Lula had dinner at my house more than ...

No News of Brazilian Victims from the Asian Tsunami

Brazil’s Ministry of Foreign Relations (MRE) released a note making telephone lines available to ...

Robbers Storm Brazilian Secure Condo and Clean Several Apartments

In Brazil, arrastão means a fishing net, it is also the act of bringing ...

WordPress database error: [Table './brazzil3_live/wp_wfHits' is marked as crashed and last (automatic?) repair failed]
SHOW FULL COLUMNS FROM `wp_wfHits`