This article is from www.blocknews.com.br and the original article can be read here in Portuguese
The acquisition of equipment for bitcoin mining in Brazil will be exempt from import fees, according to GECEX Resolution No. The growth potential of the blockchain-based economy seems to be in the focus of the Chamber of Foreign Commerce, by including such equipment among those benefiting from the exemption. The Resolution enters into force on the 16th of May.
“Servers dedicated to the mining of cryptocurrencies using the SHA256 algorithm, with energy efficiency measured at 25 degrees Celsius equal to or less than 32 J/TH (joules/terahash)” were listed among the various IT and telecommunications assets that will now have their tax rate reset to zero. import tax, the so-called ex-tariffs.
SHA256 (from Secure Hash Algorithm) is a cryptographic function that is the basis of bitcoin’s work. In addition to being used in BTC mining, SHA256 can also be used in password validation, antivirus, digital signatures, among other functions.
Zeroing the mining equipment rate is another chapter in the path of the evolution of the crypto ecosystem in Brazil, which already attracts global players with an eye on the potential of the local market. Just remember that recently, the Senate approved PL 4401/2021, which regulates the cryptocurrency market in the country, which is now awaiting further analysis by the Chamber.
In fact, the PL provides for tax exemption from PIS, Cofins and Industrial Products Tax (IPI) for the import and industrialization of software and machines capable of mining cryptocurrencies. But this is provided that renewable energy sources are used and the operation is carbon neutral.
Tax exemption is usually an arm wrestling between those who want to encourage a sector – for example, Congress or a ministry – and the Ministry of Finance. This one doesn’t like tax cuts because, in principle, it affects tax collection and, therefore, the government’s accounts.
In 2021, Gecex zeroed the import tariff on cryptocurrency storage devices, i.e. cryptocurrency wallets. The decision refers to coins such as bitcoin, ethereum, XRP, bitcoin cash, EOS and stellar and other digital currencies. According to the resolution, the reduction refers to devices “with the function of connecting any computer through USD and with a built-in OLED screen”.
With this, Brazil placed cryptocurrency wallets on the Mercosur ex-tariff list, that is, the country adopted an import tariff different from the common tariff for all countries in the bloc. In addition, it showed that the government recognized that there is not enough national supply of the product.