Brazil'S Tax Relief Policy In Shoes Making And Other Industries
In October 23rd, the Brazil federal gazette published Law No. 11.529, purchasing machinery and equipment from industries such as shoemaking, furniture, textiles, iron and steel, auto parts, automobiles, decorative stones and cashew nuts, and was exempt from PIS and CONFINS.
In addition, Brazil will provide a total of 3 billion Real credits to shoes, textiles, clothing and automobile manufacturers with annual income of less than 300 thousand Real.
2 billion of them came from BNDES bank and 1 billion from the labor protection fund (FAT).
The loan interest rate for revolving gold and export is 8.5%, with a term of up to 36 months (including 18 months grace period). The annual interest rate on loans for investment is 7%, with a term of 8 years (including 2 years grace period).
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