The total amount of government taxes is one of the biggest barriers to widespread adoption of machine-to-machine (M2M) in Brazil. According to current laws, telecom operators have to pay the same taxes for either a mobile line or an M2M application. “Reducing taxes will allow a much quicker deployment of M2M,” said Diana Tomimura, project manager at the Brazilian Ministry of Communications (Minicom).
During her presentation at this week’s Connected Living Latam Summit held in São Paulo, Tomimura said the Brazilian government is working to reduce taxes. She cited a bill that proposes cutting taxes for M2M operations. The amendment of the provisional measure number 563/2012 calls for the reduction of two taxes and if approved, might have an important impact on M2M services.
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If enacted, the bill will decrease the tax for each activated mobile line from U.S.$ 18.68 (R$38.77) to U.S.$2.73 (R$5.68) and the annual operation tax will be reduced from U.S.$4.30 (R$8.94) to U.S.$0.91 (R$1.89).
The operators associations SindiTelebrasil and GSMA said they are working closely to the government to enable the changes in taxation.
