Brazil Eliminates Taxes on Wind Parts to Spur Turbine Production

Oct. 8 (Bloomberg) — Brazil’s government approved a
provisional measure that eliminates some taxes for wind
components, an effort aimed at boosting demand for turbines
produced locally.

The measure means manufacturers will no longer need to pay
taxes under the Social Integration Program and the Contribution
to Social Security Financing to buy components used in wind
turbines, according to Brazil’s official gazette today. The two
taxes totaled 9.25 percent and the change covers parts made in
Brazil or imported from abroad.

“This measure is aimed at offering relief to the wind
industry, which wasn’t getting the same benefits as other
industries,” said Elbia Melo, president of Brazil’s wind power
association known as Abeeolica. “Without the benefit, wind
turbines would be more expansive and ultimately would mean
higher costs for energy consumers.”

Wind-power developers will continue to pay the same tax for
buying imported turbines.

To contact the reporter on this story:
Vanessa Dezem in Sao Paulo at
vdezem@bloomberg.net

To contact the editors responsible for this story:
Reed Landberg at
landberg@bloomberg.net
Will Wade, Robin Saponar

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