The Brazilian government is reportedly planning a series of tax breaks in an effort to increase investment in the telecoms sector to R$25bn (US$14bn) anually.
According to a report by local newspaper Folha de S.Paolo, the Brazilian Communications…
The Brazilian government is reportedly planning a series of tax breaks in an effort to increase investment in the telecoms sector to R$25bn (US$14bn) anually.
According to a report by local newspaper Folha de S.Paolo, the Brazilian Communications Minister Paolo Bernardo said that among the taxes to be reduced would be a tax on industrial products (known as IPI), a social contribution tax (PIS) and a social security tax (Cofins).
Bernardo reportedly calculated that this could lead to a 25% tax cut for some products. Among the products to benefit from the tax breaks would be the construction of towers and fibre-optics.
He said that his goal is for companies to invest R$25bn a year in the telecommunications industry, compared to the current level of R$17bn (US$10bn).
The minister added that companies must commit to invest in disadvantaged or underserved areas in order to benefit from the tax exemptions.
He said in the report yesterday that the proposals would be sent to the Brazilian Congress in around 15 days.
