For its author, current legislation was conceived before market globalization and is outdated

The Chamber is analyzing the Bill 3321/08, from the Deputy Afonso Hamm (PP-RS), which exempts from Income Tax some industries located inside the border area of the states of Rio Grande do Sul, Santa Catarina and Paraná. That incentive will be granted to productive activities interesting public service, chosen among those belonging to the ecological-economic zoning (ZEE) of each region.

The proposed exemption period is 10 years, from the prevailing of the new law. That exemption will be total for new companies and partial for existing companies. The reduction percentage will be defined by the Executive Power, and will be higher for companies which modernize, broaden or diversify their production.

The exemption will also be the higher, the largest the development in the undertaking, measured through the increase of its installed capacity.

Outdated legislation
Afonso Hamm argues that the Law 6.634/79, which established a border area of 150 km and defined rules for its settlement, was conceived before the market globalization, and is outdated, since it does not allow incentives for that region. He reminds that the current dimensions of the border area would be sufficient to form the 12th largest country in the world. “It is not conceivable that there are no modern and specific development policies for that large portion of Brazilian territory”, he argues.

Streamlined procedures to establish companies
The Project provides for streamlined procedures for the establishment of companies, with shortened administrative procedures. The National Safety Council’s previous agreement will not be required, which is currently necessary in that border area, because of a legal imposition. “That streamlining is a result of the anticipated planning of Public Power for the development of the border region”, affirms the deputy.

Procedure
The bill is being processed in conclusive character by the Committees on the Amazon, National integration and Regional Development; and on Foreign Relations and National Defense; and on Finances and Taxation; and on Constitution, and Justice and Citizenship.

Report - Marcello Larcher
Editing - Pierre Triboli
Translation - Positive Idiomas Ltda