As part of a regional development plan, Law 9,440/97 of 14 March 1997 grants several tax incentives to qualifying enterprises established in certain regions (e.g. northern, north eastern) of Brazil and engaged in the assembly and manufacture of specified items, such a qualifying vehicles for transporting passengers and cargo by land, farm and excavation tractors, trailers for transporting cargo and spare parts and other implements in connection with the above items.
The incentives include, among others:
- 100% relief from import duties on qualifying equipment or machinery and 90% relief on raw materials;
- exemption from excise tax (IPI) on the purchase of qualifying equipment or machinery;
