New Tax Breaks to Spur Major New Investment by Brazil’s Defense Industry

first_imgBy Dialogo November 07, 2011 Brazil’s defense industry — the largest of any Latin American nation — could double in size over the next 10 years, thanks to a new fiscal policy proposed by President Dilma Rousseff. That policy will soon provide tax breaks to Brazilian defense manufacturers, giving them lucrative incentives to make new investments and acquisitions. As a result, thousands of new defense-related jobs are likely to be created. This initiative responds to Brazil’s national defense strategy and dovetails with the country’s industrial, technological and economic development plans. On Sep. 29, the president signed a provisional measure that exempts the defense sector from paying the industrialized products tax (IPI), the social security tax (Cofins) and the Social Integration Program tax (PIS) for five years. This could translate into savings of 30 percent for defense companies. It’s a relief for business executives who rank the tax burden along with poor infrastructure as the top impediments to growth. “These measures are important to promote the defense sector, because the industry lacks adequate conditions for domestic enterprises to compete with foreign companies inside and outside Brazil,” explained Armando Lemos, technical director for the São Paulo-based Brazilian Association of Manufacturers of Materials for Defense and Security (ABIMDE). The measure is expected to generate 23,000 direct and 90,000 indirect jobs. This would nearly double the defense sector’s current workforce of 25,000 direct and 100,000 indirect jobs, said Lemos. In all, 186 companies will benefit from the program, including industry leaders Avibras (aerospace), Embraer (aircraft), Helibras (helicopters) and Odebrecht Defesa (technology). “While the measure is still pending formal implementation, it will define the registration criteria for strategic defense companies and detail the specific tax regime that will apply to them,” said Lemos. The 2008 National Defense Strategy document, published during the presidency of Luiz Inácio Lula da Silva and devised by former Defense Minister Nelson Jobim, was a major milestone for Brazil’s defense establishment after years of neglect following the country’s return to democracy. One of its primary missions was to resuscitate the largely abandoned defense industry and turn it into an efficient, competitive business capable of contributing to Brazil’s international prestige and economic growth. “Brazil’s defense requires the reorganization of the national defense industry,” the document explicitly states. A guideline set forth by the report to achieve this reorganization highlights the need for independent technological capacity through international partnerships — as well as the importance of subordinating commercial considerations to so-called strategic imperatives, such as a special legal, regulatory and taxation regime for the defense industry. Since the document’s publication, technology transfer arrangements have been made between Embraer and overseas suppliers to produce the KC-390 military transport aircraft. Brazil´s cooperation with France to build four conventional submarines and one nuclear submarine also includes a similar technology transfer agreement. A key pillar of Brazil’s new strategy is to bolster its defense industry, thereby ensuring that equipment needs are met by domestic companies capable of competing in external markets. That would guarantee economies of scale for production. “Whether owing to the size of our territory or our borders, or to the fact that our country has been blessed with enormous wealth, we need this industry because it is strategic for our sovereignty,” Rousseff said following the announcement of tax breaks for the sector. The defense industry is not alone in receiving preferential treatment. Last August, Rousseff announced the Bigger Brazil Plan (Plano Brasil Maior) aimed at protecting domestic manufacturers from increased Asian competition and a rising currency. The pilot program supports the production of clothing, shoemaking, furniture and software by offering $16 billion in tax breaks to support innovation, investment, productivity, foreign trade, human capital, sustainable production, and small and medium size companies in these sectors. In essence, the plan puts homegrown innovation and value-added production at the forefront and aims to make Brazilian companies more cost-competitive globally. “We need to develop technology in Brazil in order to add even more value to our industrial production by reducing costs through tax reductions and by minimizing bureaucracy,” said Labor Party Sen. Acir Gurgacz, in arguments shortly before the plan’s passage in August. Brazilian defense companies already receive some direct financial support from the federal government. For example, Optovac, which created a uranium valve for Brazil’s future nuclear submarine, counts on resources from the São Paulo State Research Foundation as well as FINEP, an agency of the Ministry of Science and Technology. According to the 2008 National Defense Strategy, the largest industrial projects of Brazil’s armed forces will require investments of at least $40 billion. Addressing all military needs expands the total to about $120 billion, said ABIMDE’s president, Orlando José Ferreira Neto. Brazil’s ambitious goals appear achievable. In 2010, the country was Latin America’s highest defense spender at $33.5 billion, and the only one in the region to rank among the world’s top 15 spenders, according to the Swedish research center SIPRI. The new fiscal incentives will help free up even more capital for investments in this sector.last_img read more

LSH London chief made redundant

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Grandmother guilty of child abuse murder

first_imgGrandmother Kathleen Cooper found guilty of murdering grandsonStuff 15 August 2017Family First Comment: How can a grandmother commit this sort of crime?! “Auckland grandmother Kathleen Cooper killed her grandson by throwing him down a hallway.”#drugabuse #familybreakdown #usualculpritsAn Auckland grandmother has been found guilty of murder after she killed her grandson by throwing him down a hallway.Kathleen Cooper, 65, has been on trial for murder at the High Court in Auckland for the past three weeks after killing her two-year-old grandson Jermain Ngawhau in 2015.Justice Sarah Katz summed up the case on Monday, telling the jurors to find Cooper guilty of murder they had tro conclude when she threw Jermain she knew it would likely cause his death, but did so anyway.If there was no murderous intent when she threw Jermain, then Cooper was guilty of manslaughter, Katz said.Deliberations begun just after 10am on Monday, with the verdict handed down about 2pm on Tuesday.Cooper did not show any emotion when the verdict was read.Justice Katz remanded Cooper in custody, with a sentencing date set down for early October.READ MORE: read more

Baseball looks to continue Pac-12 success

first_imgThree losses in the last four games have sunk USC baseball’s season record to 11-12, the first time the team has been below .500 since dropping its first series of the regular season against North Dakota in late February. The Trojans’ most recent loss was lopsided, as Loyola Marymount visited Dedeaux Field on Tuesday night and smothered the USC bats in an 8-0 blowout.Coming into the season, expectations for the baseball program were high, largely due to a strong bullpen that many anticipated would anchor the team. The pitching staff has struggled with inconsistency so far this spring, however, and head coach Dan Hubbs admitted that will have to change if USC is to be a serious contender in the coming months.“We need to pitch well at the start of the game,” Hubbs said. “The starters need to give us an opportunity to get into the game and get into the flow … and that gets difficult when you give up runs quickly.”Hubbs is currently in pursuit of his 100th career NCAA victory — all previous 99 wins have come during his three-plus years in charge of the USC program — and he will get his next crack at the century mark against Stanford, as the Trojans resume their in-conference schedule this weekend. The team also seeks its second consecutive series win in Pac-12 play: USC sits at 2-1 in the conference standings after its opening series victory over California.Hubbs anticipated a tough set up north, as the Cardinal have been pitching well and lead the nation in defense.“We’re going to have to hold them down because their pitching has held people down,” Hubbs said.Stanford currently sits at 12-7 on the season. Like the Trojans, the Cardinal won their opening Pac-12 series, winning two games out of three against Washington State. They are seasoned opponents, having already gone through the gauntlet with a four-game road series against Texas and a three-game set at home versus No. 3 Vanderbilt, but Hubbs said his team will be fine if the Trojans can take advantage of Stanford’s weaknesses.“We want to try to extend the game, separate the game a little bit because they … [have] not shown that they are a good catch-up team,” Hubbs said. “When we have a chance to get a run, we are going to go get it.”A series win in Stanford would put USC in a great position out of the gate in the Pac-12 standings and it could also act as a springboard for the team to start playing up to its lofty preseason expectations. Hubbs stressed that the Trojans had to pitch and play defense at a higher level, but he also praised his players’ resiliency through a slightly sluggish first two months. He was especially pleased with their performance at the plate, as USC’s bats have rebounded after their early season struggles with leaving men on base.“You’re starting to see them drive guys in,” Hubbs said. “Now we need to match the pitching with it, and maybe we can go on a run here.”The series opener between USC and Stanford at Klein Field at Sunken Diamond is scheduled to begin at 7 p.m. Friday. First pitch for remaining games is set for 1 p.m. on Saturday and 4 p.m. on Sunday. All three tilts will be broadcast on the Pac-12 Network.last_img read more

Watch: Race for the throne heats up as Maghery King to be crowned tonight

first_imgIn the most intensely fought campaign since the Trump vs Clinton presidential race in 2016, the regal throne in the Kingdom of Maghery is up for grabs – and six local men are battling it out to win the coveted crown and most importantly, the prestigious title of Maghery King.There are six men in the race to become king; David Gallagher (The Party King), James O’Hagan (The GAA King), Stephen Doogan (The Rally King), Jamie Glackin (The Drumming King), Christopher Mc Shea (The Farming King), and John Paul O’Donnell (The Singing King – whose father was also King!) The coronation of the new King is part of Maghery Community Festival, which is in full swing this weekend. The committee has planned a huge range of events for all the family including a sports day, music sessions, and a pet show!Tonight the Maghery King will be elected at 9 pm at Ionad an Mhachaire, with music and celebrations afterwards at the Strand Bar.The reigning Maghery Queen Bridget O’Donnell opened the festival on Thursday evening, having been elected queen for her embodiment of all that Maghery festival stands for; kindness, humour, and loyalty to her friends, family and community.Some of the kings have made campaign videos, with the Party King gaining endorsements from some of Ireland’s biggest celebrities! Lifford native and world class goalkeeper Shay Given says “you know it makes sense”, with rugby legend Tommy Bowe wishing him the best of luck with the promise of a pint next time he visits Maghery! The Coronas crooner Danny O’Reilly has also revealed he’s backing David. Even Daniel O’Donnell gave his best wishes to the Party King, exclaiming “hup ya boy ya.”Francis Boyle, manager of Ionad an Mhachaire has been regally appointed to assist The Party King with his important administrative duties. The monarch was even spotted getting his lustrous locks preened in Maghery Bay Salon ahead of the big reveal tonight.“This will be my land. And these will be my people,” he proclaims in his hilarious campaign video.However David isn’t the only sovereign hopeful that has been busy making campaign videos!The blue-blooded Singing King released a theatrical video stating why he should be King. Performer, charity worker, husband, and self-proclaimed “general dude and the hardest working Donegal man in London” says it’s in his blood to be the Maghery King, and hopes to reclaim his father’s crown – which he believes is rightfully his.Mary from Dungloe winner Alisha Medford has put her bet on The Farming King to win and urges the subjects of Maghery to vote for Christopher! GAA King James has been spotted canvassing in Mulhern’s Corner Bar on Dungloe Main Street and Dungloe GAA. He has even been spotted mingling with the Marys!In the lead up to the next King’s coronation, Maghery Community Festival have shared nostalgic pictures on their Facebook page of past Kings, sincerely thanking Paul Wallace for sharing them.Win or lose – true to his name the Party King promises one hell of a party regardless of the outcome!The race is on – who will the next King be?Watch: Race for the throne heats up as Maghery King to be crowned tonight was last modified: August 13th, 2017 by Elaine McCalligShare this:Click to share on Facebook (Opens in new window)Click to share on Twitter (Opens in new window)Click to share on LinkedIn (Opens in new window)Click to share on Reddit (Opens in new window)Click to share on Pocket (Opens in new window)Click to share on Telegram (Opens in new window)Click to share on WhatsApp (Opens in new window)Click to share on Skype (Opens in new window)Click to print (Opens in new window)Tags:donegalmaghery community festivalmaghery kingwatchlast_img read more