The Ministry of Development, Industry and Foreign Trade has decided to reduce import taxes on 250 capital goods and IT/ telecom items which are not produced in Brazil.Two resolutions published Tuesday (June 24) establish tax rate reductions from 14% to 2% on 240 capital goods and 16% to 2% on ten IT and telecom items.

The changes are already effective until December 2015. Reduced-tax equipment will be used in a number of projects including pre-salt and deep water oil and gas production; manufacturing welded wire meshes; paper and carton bags; automated processing and collection of solid waste; manufacturing plastic parts for agricultural machines, and others.

These temporary reductions are aimed at stimulating the country’s productive sector. Businesses estimate that the global investments associated with the reductions amount to $946 million. The main industries that will benefit from the policy are oil, mining, capital goods, autos, and aftermarket. Imports come mainly from Japan, USA, China, Germany, and Sweden.