Senate approves tax breaks for tablet production

- Thursday, September 22, 2011

Senate approves tax breaks for tablet production

Brazil's senate has approved a measure introduced by the government looking to offer tax breaks for the national production of tablet computers, according to press reports.

The measure is part of a series of government incentives designed to attract foreign tablet manufacturers to the country.

The bill offers manufacturers full exemption from the PIS and Cofins welfare taxes, and will now be sent to President Dilma Rousseff for final approval.

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According to government estimates, the tax breaks could help reduce the final cost of tablets to consumers by more than 30%.

Brazil will end 2011 with sales of some 450,000 tablets, 4.5 times more compared to last year, when 100,000 units were sold, according to a report from consultancy IDC.

Chinese electronics producer Foxconn is expected to begin local production of tablets this year. Asus and Motorola have also announced their intention to produce tablets in Brazil.