After a rocky start in negotiations, it appears that Foxconn, a major Apple supplier, has finally received the tax terms it needed from the Brazilian government to start producing iPads in the South American country.
Believe it or not, getting Foxconn’s Brazilian factory to start producing iPads is a big deal for both Apple and Apple fans in South America — it removes the need for costly important taxes that can sometimes double the cost of the tablet…
Brazilian news site FOLHA has learned the details of Foxconn’s tax terms :
“Brazil’s Inter-Ministerial Decree 34, which allows for a reduction or exemption from taxes for certain tablet computers, was signed on Monday and published in the country’s “Official Gazette” on Wednesday, clearing the way for Chinese manufacturer Foxconn to begin production of Apple’s iPad.
Specifically, the decree states that companies investing in the research and development of keyboardless touchscreen tablets weighing less than 750 grams qualify for IPI (Excise Tax), PIS (Social Contribution Tax) and COFINS (Federal Contribution Tax) incentives. Also included under the decree are accessories, cables, power supplies and manuals associated with tablet computers.”
Foxconn’s Brazilian plant was expected to start producing iPads last July. And then the date got pushed back to November. But now that the manufacturer has the necessary tax breaks, it shouldn’t be too long before we start seeing “Assembled in Brazil” iPads turn up.