Governmental decree excludes THC from import tax calculation

The Brazilian Federal Gazette, published on June 8, featured a presidential decree excluding terminal handling charges (THC) from the Import Tax calculation basis. According to the Ministry of Economy, the decree will reduce the costs of importing, “promoting a transversal trade opening of the economy, with positive impacts on the country’s competitiveness and integration to global trade flows.”

Terminal handling activities include transporting goods through port facilities, opening volumes for customs checking, cargo handling, and storage, in addition to wharfage practices that involve port rigging.

The recently-published decree on the 8th amends another, dated February 2009, and, according to the government, “is in harmony with international commitments assumed by Brazil with Mercosur partners and the World Trade Organizations (WTO).”

The Special Secretary for Productivity and Competitiveness of the Ministry of Economy, Daniella Marques, commented on the ministry’s website that the decree “promotes a better allocation of resources, corroborating to the formation of a more efficient and competitive economy, and reaffirming the government’s commitment to reducing the Brazil Cost.”

Daniella reinforces that the reduction has a horizontal effect on the entire economy, “potentially reducing costs for consumers and companies installed in Brazil.” The ministry did not inform of possible fiscal impacts related to the measure.

Source: Broadcast Estadão

To read the full original article, please go to:

http://broadcast.com.br/cadernos/financeiro/?id=czlYNGdFQ0Q0OThTSHdLeGEyTC9Fdz09

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