Government extends exemption for smartphones, PCs and tablets until 2018

The Ministry of Finance announced on August 21 that it will extend until December 31, 2018 the tax benefit of the Digital Inclusion Program, which would expire at the end of this year. The so-called Lei do Bem (Law No. 11,196/05) reduced PIS/Cofins rates to zero on retail sales of computers and notebooks – and which today also covers tablets, modems, smartphones and digital routers. The government's tax waiver is estimated at R$ 7.9 billion in 2015.
 
Since the program was created in 2005, national production of computers has increased from 4 million to 22 million units per year. “By 2017, Brazil can reach the ratio of one computer for each inhabitant”, estimates the Treasury in a note.
 
With regard to cell phones, Brazilians currently have 271.1 million installed units, which means 1.35 devices per inhabitant. The sector estimates for this year the production of 46 million units of smartphones, which corresponds to 70% of the cell phone market in the country.
 
 
Impacts for the sector
 
For Manoel dos Santos, legal director of ABES, the announcement of the extension of the tax benefit favors the sector that the entity represents. “Software runs on hardware. The more machines are sold, the more software sales are boosted”, he celebrates.
 
“This extension effectively contributes to the growth of the Information Technology sector in Brazil, as companies can renew their equipment park and invest in the mobility of their staff. In addition, the digital inclusion of the Brazilian population is being promoted, which has access to computers, tablets and smartphones at more affordable prices”, says the legal director.
 
Santos reinforces that the entire sector chain is favored, as it is necessary to meet the increase in demand. “The increase in the number of people connected calls for more investment in the Brazilian IT infrastructure and stimulates the development of software and services companies, as it leads to the creation of new programs, applications and the modernization of applications in general”, he concludes.