CAMEX reduces import tax on machines, computers, and cell phones

On March 17th, the Executive Management Committee (GECEX) of the Ministry of Economy’s Chamber of Foreign Trade (CAMEX) approved a 10% reduction in import taxes on capital goods, computer equipment, and telecommunications.

In a note, the Ministry of Economy stated that the measure will reduce costs, increase competitiveness, and ultimately benefit consumers, who will pay less to buy items such as computers and cell phones. Because of the devaluation of the Brazilian currency over the last year, these products had seen a considerable increase in prices in Brazil. According to the Ministry of Economy, prices should be 2% to 5% cheaper for consumers. The measure will cause a loss of revenue of R$ 1.4 billion this year.

Altogether 1,495 products, including subtypes, had their import tariffs reduced. As it involves capital goods and IT and telecommunications goods, the measure did not depend on negotiation with the other Mercosur partners. And since the change occurred on a regulatory tax (used to regulate the economy), the government does not need to raise other taxes or cut expenses to compensate for the loss of revenue, as determined by the Fiscal Responsibility Law for other types of taxes.

Currently, import tariffs for these products range from zero to 16% for goods that pay Mercosur’s common external tariff (TEC). With the reduction, a machine that would normally incur a 10% tax to enter the country will now incur a 9% tax. An electronic device incurring a tax of 16% will now incur a tax of 14.4%. Items charged at 2% will see a greater reduction and the rate will be zeroed. According to the Ministry of Economy, the measure reduces bureaucracy and simplifies the import/export process.

The Ministry of Economy detailed some of the reductions: cell phones and laptop computers will have their import tax reduced from 16% to 14.4%. In the case of medical X-ray equipment and optical microscopes, the rate will decrease from 14% to 12.6%. Other products benefited by the measure are machines for baking and brewing beer and capital goods related to civil construction, such as cranes, excavators, forklifts, locomotives, and containers, among other items.

Source: Agência Brasil

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