Measure made by President Jair Bolsonaro, facilitates the purchase of capital goods and information technology and telecommunications without national production.

The approval by the government of Jair Bolsonaro corresponding to 281 ex-tariffs for machinery and equipment not produced in Brazil, took place this Friday, August 02, by the Secretariat for Foreign Trade and International Affairs (Secint) of the Ministry of Economy (ME) . The reduction already reaches 1.189 products to encourage investments.

The measure taken by the government temporarily resets the Import Tax rates on 261 capital goods (BK, according to the nomenclature of the Common External Tariff of Mercosur) and 20 IT and telecommunications goods (BIT).

The reduction is contained in two Secint ordinances published today in the Official Gazette (DOU). A Ordinance No. 510 decreases the rate of 14 BK from 261% to zero, including 240 new and 21 renewals. already the Ordinance No. 511 defines 20 new ex-tariffs for BIT, which will have the rate reduced from 16% to zero.

According to the Undersecretariat for Commercial Strategy of the Executive Secretariat of the Secint Chamber of Commerce (Camex), in 2019 alone, a total of 1.189 ex-tariffs have already been granted to BK and BIT. The objective is to promote the attraction of investments to Brazil, exempting the contributions directed to productive undertakings.

The Secretariat for the Development of Industry, Commerce, Services and Innovation (SDIC) of the Ministry of Economy carried out the procedures and analyzes of the two ordinances in accordance with Camex Resolution No. 66/2014.

The procedures use the new criteria introduced by Ordinance No. 309/2019 of the Ministry of Economy, which expand the possibility of ex-tariff concessions, still depending on SDIC regulation.

Government proposes reduction of IPI on video game consoles to 40%

This week, President Jair Bolsonaro used Twitter to announce promises about reducing taxes on electronic games. In the draft of the decree, a reduction of the IPI (Tax on Industrialized Products) charged for video game consoles from 50% to 40% is foreseen.

The Ministry of Economy believes that the tax reduction will stimulate the electronic games segment in the country – “the branch of the entertainment sector that grows the most in the world”. On the other hand, the decrease in tax collection should mean a loss of more than BRL 50 million for public coffers by 2021.

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