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Wednesday
13 Dec 2023

Brazil to Resume Import Taxes on Solar Panels, Wind Turbines

13 Dec 2023  by reuters   

An employee works among solar panels of Bemol Solar plant outside Manaus, Amazonas state, Brazil August 23, 2021. Picture taken August 23, 2021. REUTERS/Bruno Kelly Acquire Licensing Rights
The Brazilian government approved on Tuesday measures to raise import taxes on photovoltaic modules and wind turbines, in a move that should give a boost to local production of equipment used to generate renewable energy.

The government revoked an import tax subsidy on assembled solar panels, as the country manufactures similar products, the industry and trade ministry said in a statement.

The measure will come into effect on Jan. 1.

The government also revoked more than 300 temporary tax reductions on solar modules, effective in 60 days.

Brazil produces some of the equipment used to generate solar energy, which has already become the second-largest source of electricity in the country. However, the panels are mostly imported from China.

The move was welcomed by Brazil's electrical industry association Abinee, which said that local manufacturers "suffer losses and have lost jobs" due to the import of Asian products that are subsidized in their countries of origin and have an unfair advantage.

The government has also raised the minimum generation capacity for wind turbines to qualify for an import tax exemption. Equipment with power above 7,500 kilovolt amperes (kVA) will continue to be exempt for the next year, compared with 3,300 kVA previously.

From 2025, all imports of wind turbines will be subject to an 11.2% import tax.

The measure should benefit wind turbine manufacturers, who had complained of increased competition from imported products while the local industry shrank as some global companies stopped producing in Brazil.

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