Brazil reduces taxes on satellite internet

Brazil reduces taxes on satellite internet

Brazil's statutory bodies have approved the Provisional Measure (MP) to cut fees for satellite services to make access to broadband internet cheap.

The National Congress concluded the voting Provisional Measure (MP) 1018/2020, which reduces the tax burden on broadband service via satellite - that is, internet - provided through small antennas.

Last week, the Chamber of Deputies approved MP 1018/20 which reduces charges on antennas connected to the internet service by satellite, alters rules for the application of Fust (fund for the universalization of telecommunications services) resources, and taxes on platforms for streaming.
After obtaining 302 votes in favor and 59 against, the proposal went to the Senate.

When voting on the MP, senators amended the original text sent by the House of Representatives and so the proposal will need to be analysed again by the deputies.

Conexis, a Brazilian telecom union established in 2003 that represents operators offering mobile and fixed telephony services in Brazil, welcome the result of the vote, which allowed the text to be sent for sanction by the President of the Republic.

Conexis's executive president, Marcos Ferrari, praised the work of the House and Senate rapporteurs, of the parliamentarians, and emphasized the importance of the MP to boost investments in the country: “Measures like this are necessary for the expansion of investments and public policies in telecom. They are fundamental to prepare the country for the arrival of 5G.”

Currently, the telecommunications and internet sector in Brazil is one of the most taxed in the world. In 2020 alone, the sector paid Brazilian real 60,6 billion in taxes, which represented 42% of net revenue.