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

Biofuel Is Inevitable and Brazil Leads the Field, Says Lula

Brazil's discovery of an oil reserve in the Santos Basin in the south of ...

Paraguay: Is Another Brazilian Neighbor Veering to the Left?

After deciding not to seek a constitutional amendment to allow for his consecutive re-election, ...

Brazilian Soy Growers Fear They Will Be Ousted from Bolivia

Brazil and Bolivia decided to establish a technical group to evaluate property holdings along ...

In Brazil, Left Gives a Show on How to Lose Power

With minds concentrated firmly on the race for the Oval office this weekend (though ...

More Brazilian Industries Join the Ban-Chinese-Goods Bandwagon

The announcement last week by Brazil’s textile industry that it will seek safeguards against ...

Is the US Navy After Brazil’s Oil? Some Brazilians Think So

In a region where there are virtually no terrorist groups seeking to attack the ...

U.N. Secretary General Wants Brazil to Balance Biofuels and Food Crops

U.N. Secretary General Ban Ki-moon informed he will be discussing how to balance climate ...

At Midnight, You Will Be One Hour Farther from Brazil

Clocks in Brazil should be set forward an hour at midnight tonight, in the ...

Brazil Light

Lively Brazil By Francesco Neves Brazilian mood has swayed from the "we are the ...

US Group Calls for Immediate Debt Cancellation for LatAm Countries

Neil Watkins, National Coordinator of the Jubilee USA Network, a group that seeks debt ...

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