Brazil’s government is readying an export promotion program that includes tax exemptions and credits and the creation of a state-run trade bank, amid a dramatic decline in the nation’s trade surplus, Valor Economico newspaper reported.
The plan will be unveiled by President Luiz Inacio Lula da Silva’s economic team, Valor said, without saying how it got the information. The creation of the lender, which will likely be named Eximbank, has been considered for more than two decades.
Under the program, exporters that are eligible to receive tax credits for some social security taxes will be refunded within 45 and 90 days, compared with the average five-year period previously, Valor noted.
Importers of machinery and other capital goods will also be eligible for some tax exemptions, under the assumption such imports favor the country’s ability to compete and reduce supply bottlenecks, Valor reported.
Small and medium-sized enterprises will be allowed access to a tax registration system that is now only permitted for the biggest companies, and new tax rules will encourage the smaller firms to export, Valor added. (Reuters)