The government of Brazil has presented the new National Export Plan, which is designed to support exports of Brazilian products, increase the number of exporting firms and foster competitiveness. The plan also aims to reverse the trend in the trade balance, which closed in 2014 with its first deficit in over a decade, of about 2.9 billion dollars.
Key funding and fiscal incentives include a strengthening of the “Reintegra” programme, which envisages tax credits for Brazilian companies producing for export. The credit, at present amounting to 1% of the total tax burden on goods for export, will be raised to 2% for 2016 and 3% for 2017. The threshold for operations eligible to benefit from the export guarantee fund will also be raised and the tax system for purchases of raw materials for the production of goods for export will be simplified.
