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The Brazilian Ministry of Defense (MoD) has approved the first 26 defense companies to benefit from tax incentives aimed at stimulating the defense industry.
According to Janes the Special Tax Regime for the Defence Industry (RETID) aims to make Brazilian defence products more competitive against those made abroad. The long-term aim is to encourage the defense industry to become the main supplier of strategic defense solutions to the MoD and to help increase exports.
Each company will receive tax exemptions ranging from 13-18%. According to the MoD, Brazil currently operates a defense trade deficit of around USD420 million, exporting defence-related goods and services worth BR1.5 billion (USD640 million) and importing BR2.5 billion.