Tablets produced in Brazil will have Tax Benefits

As from today (May 23, 2011), the Brazilian Government has granted Tables the status of "computing machines"  or "computers". In this quality, they are automatically included in the special Tax regimen for electronic goods (created by Brazilian federal Act n. 11.196 from 2005).

The practical consequence is a substantial tax reduction on the production and distribution of such items.

The catch is: Only Tables produced in Brazil are recognized as computers. (This seems juridically wrong on many levels and I wonder if this will ever be discussed in the WTO. But we must work with the facts)

This decision has a clear destination: Foxconn, which has announced its plans to invest in Brazil (much to the benefit of China Brazil political relationship, I must add).

In spite of that, there is no reason why all other tables manufacturers shouldn't try to engage the Brazilian market, now that the tax conditions have been considerably improved.

What do you think about it?