Brazil cuts import taxes on 157 products

The Brazilian government on Tuesday announced import tax cuts on 157 products, including capital goods and computer equipment. The government renewed its lower tax rates on 17 products and added another 140 to the list, slashing the tax rate on capital goods from 14 percent to 2 percent and the rate on computer and communications equipment from 16 percent to 2 percent. The lower import taxes are designed to boost production and efficiency of the country's industrial sector by allowing companies to bring in needed machinery at a lower cost. The government said it expects the auto parts, railways, services, oil, telecommunications and paper sectors to benefit the most from the tax breaks. It also voiced the hope that the tax cuts will lead to an investment of some 1.69 billion U.S. dollars. Several large projects, including improvements to the railway network to accommodate greater production and transportation of goods to ports, are expected to benefit from the lower import taxes. The tax break will remain in effect until Dec. 31, 2013, for communications equipment and until Dec. 31, 2014, for capital goods.