Brazil’s President Luiz Inácio Lula da Silva has signed Law No. 11,508/07, which changes the tax regime applicable to the country’s special export processing zones (ZPEs) — but first he vetoed 19 articles, upsetting supporters of the original law project and also Argentina, which is a trade partner in Mercosur. The law empowers the executive branch to create ZPEs in less developed regions of the country with the goal of reducing regional differences and promoting exports and social and economic development. As signed by Lula da Silva, however, the law no longer contains the tax incentives that made ZPEs attractive.
15Aug 2007