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Brazil Will Reinstate Import Duties On Solar Panels And Wind Turbines

Muammar

IBX-Jakarta. On Tuesday, the Brazilian government endorsed steps to increase import duties on photovoltaic modules and wind turbines, aiming to bolster the domestic production of renewable energy equipment. The government canceled a subsidy on imported assembled solar panels, citing domestic manufacturing of similar products, as per the industry and trade ministry’s statement. These changes will take effect from January 1. Additionally, over 300 temporary tax reductions on solar modules will be revoked within the next 60 days.
Despite Brazil’s status as the second-largest user of solar energy, the majority of panels are imported from China, highlighting the nation’s reliance on foreign-made equipment. The government’s decision received praise from Abinee, Brazil’s electrical industry association, which highlighted the losses and job cuts suffered by local manufacturers due to subsidized Asian imports enjoying an unfair advantage.
Furthermore, the government increased the minimum generation capacity for wind turbines eligible for import tax exemptions. Turbines with a power capacity exceeding 7,500 kilovolt amperes (kVA) will remain exempt for the upcoming year, up from the previous threshold of 3,300 kVA. Starting in 2025, all wind turbine imports will face an 11.2% import tax. This move aims to support domestic wind turbine manufacturers facing heightened competition from imports, especially as global companies ceased local production in Brazil, causing a contraction in the local industry.
Source: Brazil to resume import taxes on solar panels, wind turbines | Reuters
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