REPORTO TAX EXEMPTION MEASURE REINSTATED

The reinstatement of the Reporto tax exemption scheme for imported rail and port equipment, announced shortly after the closure of Intermodal South America 2022 (ISA), provided a welcome boost to the equipment supply sector. It opens the door to the confirmation of many provisional orders taken at ISA. Kalmar, Liebherr and Konecranes had, for example, intimated during the Sao Paulo show that several new contracts would only be signed after a final decision was made in Brasilia on Reporto.

Reporto legislation rules that all port and railroad equipment imported into Brazil will be exempt from various taxes, sometimes totalling up to 45 per cent of the cost of the ship to shore gantry cranes, reach stackers, RTGs, terminal tractors, etc, etc. It had not been functioning since December 2020 but now makes a welcome return in 2022.

The rationale underpinning its introduction is that due to the effects of Covid and more recently the war in Ukraine, and notably the slowing of the local and international economies, it is seen as an essential measure to stimulate the purchases of port and rail equipment which, in turn, will help reduce logistics costs.

Renato Macedo, Director General for TFD, the main agent for Konecranes in Brazil, typifies the delight of the systems supply sector: 

“TFD Brasil is delighted that the Brazilian Government has re-introduced the Reporto benefit for our Port sector, as we believe this action will enable all our customers to continue increasing and renewing theirequipment fleets so that Brazilian Ports continue their role in helping our economic growth,” he told Port Strategy.