Brazil Extends to 2010 Reduced Import Tax on Machinery

Imported machinery into Brazil The reduction from 14% to 2% in the Import Tax on the purchase of machinery and equipment that is turned to the productive sector and has no similar products on the national market should continue up to the end of 2010.

The tax break was expected to end on December 1st. 2008, but it was extended by the Foreign Trade Board (Camex), an organization under the Ministry of Development, Industry and Foreign Trade.

According to the Camex, the Common Tariff Regime of the Mercosur (the Common Market of the South), allowing for automatic extension of tax benefits by the countries of the bloc, is about to be enacted.

On providing this information, the Camex secretary, Lytha Spí­ndola, said that in recent months the demand for the tax benefit has been growing, making it compulsory for the ministry to publish the list of products that benefit every month.

Camex had been publishing the list every six months, but, in recent months, the organization found the need to make it monthly due to the demand from businessmen, who are investing in capital goods.

Lytha Spí­ndola believes that this race to purchase machinery and equipment is positive in the social field, as it allows for the generation of jobs.

The list of items that may be benefited is produced in a partnership between the Camex and the Internal Revenue Service, the Ministry of Finance and several secretariats. The import fee levied on capital goods in general is 14%. Only electronic products and information technology and telecommunications equipment pay more.

On paying 2% Import Tax, the productive sector is also freed from paying the Industrialized Product Tax (IPI) and the value added state tax (ICMS).

ABr

Tags:

You May Also Like

Brazil Holds Series of Raids to Embarrass Foreign Whore-Chasing Tourist

For this week, Brazil’s Federal Police in the northeastern city of Natal, capital of ...

With 30,000 Articles Brazil Is 13 in the World in Scientific Output

In the list of countries that produced the most science in the world last ...

Development Bank Chief Predicts Full Steam and 5% Growth for Brazilian Economy

Progress in the Brazilian industrial sector in the first half of this year was ...

Brazil Company Raises over US$ 1 Billion for Ethanol Projects

A new Brazilian company, Vital Renewable Energy Company (VREC), announced that it has secured ...

Brazil Sets Half a Billion Dollars Apart for Nukes and Atomic Submarine

Brazilian President Luiz Inácio Lula da Silva announced that Brazil will budget about half ...

From Sacred to Samba

Investors have been pulling their money out of the Brazilian market at a frantic ...

In Brazil, I Found Out, Magic Is an Everyday Reality

There is a church in Curitiba that blesses cars. When I first heard this, ...

A Fund to Bolster Trade Between Brazil and Venezuela

Brazil’s National Economic and Social Development Bank (BNDES) is studying the creation of the ...

Use of Humans as Guinea Pigs in Brazil Due to Faulty Translation

A mistake in the Portuguese version of a research project on malaria was presumably ...

Brazil: Trying to Save the Forests

The conservation and recuperation of the remnants of araucária forests in the South of ...