Unofficial translation
RIO DE JANEIRO, Sept. 25 (Xinhua) – The Brazilian government on Monday extended the tax exemption on the country’s exporters for one more year to maintain their competitiveness during the new coronavirus (COVID-19) pandemic.
Brazilian President Jair Bolsonaro signed a decree that exceptionally extends for one year the “drawback” and tax exemption regimes, the Ministry of Economy reported.
These two regimes give Brazilian exporters greater competitiveness, reducing taxes on imports and local purchases of products used in the production of goods for the foreign market.
Due to the strong impact of COVID-19 on the Brazilian economy, the Government published on May 4 the tax exemption for the export sector for five months, which was now extended for another year.
“The expansion seeks to avoid that, based on the reduction in economic activity in Brazil and abroad caused by COVID-19, Brazilian companies that have exemption drawback concessionary acts, with non-extendable expiration in 2020, are not able to carry out in the term originally established, the replacement of the stock of products equivalent to those previously applied in exported goods “, states the text.
“This is because carrying out these operations at this time could compromise the companies’ working capital without providing them with the corresponding income in the short term,” the ministry added.
Source
