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Brazil Reduces Import Taxes on Capital Goods
The government recently announced a series of tax cuts on the importation of capital goods to allow Brazilian companies to “stock up” on needed materials at a lower price.
The Brazilian government is very cognizant of the impact a global economic slowdown due to events in Europe and slower growth in China may have on the pace of growth of its own economy. As such, the country is taking aggressive efforts to improve the competitiveness of Brazilian companies. The government recently announced a series of tax cuts on the importation of capital goods to allow Brazilian companies to “stock up” on needed materials at a lower price.
In keeping with the theme, the Brazilian International Trading Board (Camex) has announced the reduction in import duty of 298 capital goods, including telecommunications and information technology products. For items that have no domestic production, the import tax will decrease to 2% and 4% for all other items on the list. Before the new tax cut implementation, tax rates for capital goods were 14% and 16% for computer and telecommunication products respectively. This reduction in import taxes presents an excellent opportunity for U.S. exporters to step up their marketing efforts in order to sell to the Brazilian market. Potential importers should be aware that the current reductions are intended to be temporary. Consequently, actions should be taken now in order to lock in sales at the reduced import tax rate.
According to Brazil’s Development Ministry, the main sectors contemplated in accordance to the value of imports were those of auto parts (14.79%), furniture wood (9.83%), capital goods (9.18%), shipbuilding (8.22%), and steel (6.69%). It is anticipated that these goods will be purchased mainly from Germany (23.7%), U.S (14.5%), Italy (13.9%), France (11.4%), and Finland (10.8%).
For more information and serious inquiries on how your company may benefit from exporting its products to Brazil and if your product may qualify, please contact Anthony Girolami by e-mail at agirolami@girolami-
Girolami Legal Group A.P.C (www.girolami-