BOLSONARO SANCTIONS ‘BR DO MAR’ BUT VETOES TAX BENEFITS

The bill that gives incentives to coastal navigation in Brazil, the ‘BR do Mar’, has been sanctioned by president Jair Bolsonaro on Friday, January 7th. Notwithstanding, the text had passages partially vetoed. The sections vetoed by President include the number of seafarers who must work on the vessels. The text approved by Congress established that the crew should be at least ⅔ Brazilian. With the veto, only those working as captains, cabotage masters, chief engineers, and engine drivers will have to be natives. The rule, according to Bolsonaro, “would result in an increase in vessel expenses, reducing the appeal of the program keeping a higher number of low-cost foreign vessels to operate in the country.” Another section vetoed by the President has to do with the reduction of the Additional Freight rates for the Renewal of the Merchant Marine (AFRMM). Long-distance navigation rates had been reduced from 25% to 8% in the Congress text, while cabotage had been reduced from 10% to 8%. The rates applied to the transportation of bulk materials and other commodities were also reduced to 8%. Bolsonaro claimed that “such reduction would go against public interest as it would lead to reduced earnings without providing an estimate of how much it would leave an impact on budget and finances and providing no compensatory measures”.

Sources: Congresso em Foco/Datamar News