Earlier this month Foxconn did a series of demands to the government to accelerate the deployment of a possible Apple automaker in the country. Among the demands of the company, was the haste in setting the tax burden of the tablet, which is still considered a computer in country. It was only late last week that the request seems that took effect with the announcement of an interim measure which should be out this weekend.
This measure, according to Communications Minister Paulo Bernardo, the tablet falls on the same law to encourage the manufacturing of notebooks and so he wins exemption from PIS / COFINS, besides having its IPI rate reduced from 15 to 3%. Adding all the incentives, the final value of a tablet mounted in Brazil could fall by up to 36%. The percentage of the discount varies by the GST tax is not the same, varying from state to state.
The measure will not only encourage the Foxconn, but also all other manufacturers who currently ride tablets in Brazilian land. The government's only requirement is that at least 20% of the tablet components are manufactured domestically. All others can be imported.
