Industrial policy will also focus on importations
Valor Econômico - 03/14/2008
Even before releasing the new industrial policy, the government is already negotiating with two multinational corporations the setting up of two plants for the production of medical equipment, such as devices for hemodialysis, in order to substitute importation with the incentives to be announced within 15 days. "The industrial policy will provide conditions so that the productive foreign investments happen faster and replace importations", evaluates one of main persons in charge of the industrial policy, Minister of Development, Industry and Trade Miguel Jorge. "There are at least two major projects underway to make the equipment purchased in large scale, even by the Ministry of Health, clinics and hospitals, to be produced in the country". Miguel Jorge affirmed, however, that there is no intention on the part of the Brazilian government to repeat the model of the 70's, of importation replacement as a rule. The new industrial policy may have specific measures for 25 sectors, among which the aeronautical industry, which already has its PRO-Aeronáutica (PRO-Aeronautics) funding lines outlined in the BNDES. The bank, besides including the production of medical equipment in its program of financings, will have a special program for the pharmaceutical industry, by means of which it will finance the production, by the national pharmaceutical laboratories, of the medicines consumed by the Brazilian Health Care System, according to a list prepared by the Ministry of Health. Another star of the new policy will be the incentive to the car industry so that it brings to Brazil its project development activities. BNDES (Brazilian Social and Economic Development Bank) will develop a funding line for the development of prototypes, an old claim of the industry. Among the taxes that may undergo reduction for the benefited sectors, the minister listed the PIS-Cofins (VAT tax), the IOF (Financial Operation Tax) falling upon the "drawback" operations (importation of goods for the manufacturing of products intended for exportation). Other sectors that will benefit are those of information technology, electric electronic devices and civil construction. The new policy will bring performance goals and mechanisms to demand results, according to the minister. Among the goals are increasing the percentage of investments in relation to the Gross Domestic Product, from 17% to 21% up to 2010, causing an increase of the expenditures of the companies in research and development, from 0.54% to 0.59%.