Information Technology in Brazil: bill that creates tax incentives for the production of tablets is enacted into law
Tax incentives for the production of tablets in Brazil were enacted into law recently, according to publication of the provisional measure that stimulates the manufacture of the devices in the country free of PIS and Cofins in the Diário Oficial da União, signed by President Dilma Rousseff on Tuesday (October 11th, 2011), which officially include tablets in the Digital Inclusion Program of the Brazilian government.
Devices that have “a central processing unit with input and output data through a touch screen area exceeding 140 square centimeters with no keyboard” will benefit from the new law.
China’s Foxconn, which assembles the iPad from Apple conditioned the start of production in the country to the granting of tax incentives which were offered to other computer products. With the measure of tax cuts, the prices of tablets to fall more than 30%, according to the Brazilian Ministry of Communications.
According to the Brazilian government, Samsung, Motorola and China’s ZTE also expressed interest in producing tablets in their country. The Positivo Informática, the largest manufacturer of computers in Brazil, announced in September/2011 its entry into the segment.
The inclusion of tablets in the “Good Law” provides that the Tax on Industrialized Products (IPI) download these products from 15% to 3%. In addition, the PIS / Cofins falls from 9.25% to zero.