Brazil does away with customs fees on imports for instrumental goods and electronic equipment. This has been stated last week by the Government, which has decided to reduce the customs fees on imports for 140 goods last week with a reduction of the tax rates from 14% to 2% with regards to the instruments and from 16% to 2 % for IT and communication equipment.
It represents a strategic decision from the Government since none of these 140 goods are manufactured in Brazil and thanks to the new taxation scheme the local companies can import the required machinery at lower costs, increasing thereby the productivity of the industrial sector. The reduction of the fees will be extended till the 31st December 2013 for the electronic equipment and till the 31st of December 2014 for the instruments.
Many sectors are going to be benefit from the introduction of this measure: railroads, automotive, service, paper and telecommunications. The aim of the Government is to attract foreign investment of about US $ 1.690 million.
The Government’s decision will have immediate repercussions on a wide range of on-going projects, mainly in the automotive sector (with a particular reference to the project regarding the building of a tire factory in the State of Bahia) and on all those projects related to the improvement of the railway infrastructures, in order to guarantee a more efficient transportation of the goods to the ports.