Measure contributes to increasing companies' cash flow and the Gross Fixed Capital Formation, which measures future production capacity with acquisition of machinery.
Decree defined 23 activities in industrial sector that will benefit from the first stage.
R$3.4bn in credits for purchasing new machines, equipment, devices, and instruments.
The objective is to modernize the Brazilian industrial park, increasing productivity, sustainability, competitiveness, safety of companies, stimulating private investment.
Law 14.968
Established policy guidelines for information and communication technology and semiconductor sectors, such as the value-added increase in national production.
Increased investment in research, development, and innovation (RD&I) areas in Brazil.
Encouraged the development of national technologies, as well as the innovations.
Increase in sectoral and national productivity; expansion, maintenance of employment.
Incentive for public purchases of information and communication technology products.
Also, incentives for semiconductors manufactured in Brazil, use of national technology.
Integration of information, communication technology, and semiconductor industries.
Reduction of regional and social inequalities; search for technological sovereignty.
Reasons for the Veto
Art. 11 of Bill 13 established automatic extensions for incentives until Dec. 31, 2073.
Despite good intentions of the legislator, the legislative proposal is unconstitutional.
Budget guidelines law exempts them from clauses requiring maximum validity period.
This is a violation of the principles of legality, as set out in Art. 150 of the Constitution.
The provision also goes against the public interest, by advocating the renewal of tax benefits for a period exceeding five years, which violates Article 142 of Law 14.791.
Revocation
Law 14.968 revoked items of Laws 11.484, of May 2007, and 13.969, of Dec. 2019.
Effectiveness
Law 14.968 shall come into force on Jan. 1, 2025.
Regulators
BRZ GVT
Entity Types
Corp
Reference
Rpl, OG, PR, 9/12/2024; Law 14.968, Message 1.060, 9/11/2024;
