Gecex-Camex (Executive Management Committee of the Foreign Trade Chamber) decided this Monday (11) to increase the import tariff on photovoltaic modules from 9,6% to 25%.
The decision was made at the 220th Ordinary Meeting of Gecex. The measure will come into effect after the publication of the resolution in the DOU (Official Gazette of the Union), expected to occur in the coming days.
According to the Ministry of Development, Industry, Commerce and Services, the decision is a response to two requests to increase the standard rate for solar modules classified under NCM code 8541.43.00.
The requests for changes to the List of Exceptions for Information Technology and Telecommunications Goods and Capital Goods (LEBIT/BK) were filed by two national manufacturers and, after recommendations from the Tariff Changes Committee, were deliberated and the increase in II (Import Tax) was approved by Gecex.
According to the TEC (Common External Tariff), this NCM refers to photovoltaic cells assembled in modules or panels, that is, already assembled photovoltaic modules, commonly used in projects. GD (distributed generation) and GC (centralized generation).
The controversial Gecex decision takes place during COP29, a global event in which leaders and representatives from around the world meet to seek solutions to reduce greenhouse gas emissions.
However, while the conference aims to reinforce commitments to a greener economy, the Brazilian government is making decisions that could impact the solar energy market, one of the main vectors for a clean and affordable energy transition in the country.
In addition, the G20 Leaders' Summit is scheduled for November 18 and 19, 2024, and will take place in Rio de Janeiro, with Brazil as its chairman and the participation of representatives from the world's main economies.
The G20 agenda includes topics of interest to the world's population, such as trade, sustainable development, health, agriculture, energy, environment, climate change and combating corruption.
With this measure, Brazil's position as one of the leaders in the adoption of renewable energy and in the energy transition may be questioned, as the announced increase in import tax discourages investment in photovoltaic solar generation projects.
This contradiction between discourse and practice reveals the need for greater alignment between internal actions and the commitments assumed by Brazil in international forums.
The solar energy market, in addition to contributing to decarbonization, promotes economic development, job creation and energy inclusion. Deliberating on issues that hinder the growth of this sector runs counter to global and local efforts towards a more sustainable future.
What changes in practice?
But, after all, what does this Gecex decision represent in the day-to-day lives of companies operating in the solar energy market?
According to a Wladimir Janousek, Secretary of Industry and Commerce at INEL (National Institute of Clean Energy), the changes will only be confirmed after the publication of the resolution by Gecex in Official Gazette.
“The deliberations are clear and the resolutions and ordinances will bring specific provisions for increasing the standard rate and for changes in the import regime for solar modules,” he said.
INEL also mentioned that the “solar sector already faces numerous challenges to continue its expansion, such as restrictions on DG systems and generation cuts in GC projects. The impacts on equipment taxation represent additional costs to investments and, combined with the challenges that the segment already faces, will penalize the entire supply chain, whether for imported products or national modules.”
“Without demand, there is no market for imported modules or for national modules, the cost component is relevant, but it is being overshadowed by other restrictions that current projects and new installations have faced,” added Janousek.
In an interview with Canal Solar, John Paul Muntada Cavinatto, partner in the Tax practice at Lefosse Advogados, said that “the Gecex decision has not yet had any practical effect since a resolution on the decision has not yet been published in the DOU (Official Gazette of the Union)”.
The professionals also clarified that companies that import photovoltaic modules will be able to claim exemption from import tax on these products.
Until June 2025, Gecex-Camex established a quota of US$ 1,01 billion, according to Gecex Resolution No. 541, of December 20, 2023. However, it is important to mention that this resolution may be modified.
Who also commented on the Gecex decision was ABSOLAR (Brazilian Association of Photovoltaic Solar Energy), which harshly criticized the decision. “The increase in import tax on photovoltaic modules could cause an imminent risk of an increase in the price of solar energy for Brazilians, a drop in investment, capital flight, rising inflation, job losses and company closures,” the association alleged in a press release.
A ABSOLAR It also claims that the decision could also put the competitiveness of the country's solar market at risk, potentially leading to the cancellation of projects already contracted and hindering investment plans for future ventures.
“A ABSOLAR carried out a survey among associates with projects at potential risk: there are at least 281 projects, totaling more than 25 GW and more than R$97 billion in investments until 2026 (…) These projects can contribute to the generation of more than 750 thousand jobs and the reduction of 39,1 million tons of CO2”, he reported.
“It is important to highlight that the national industry cannot supply even 5% of the national demand for photovoltaic panels, with a production capacity of 1 GW per year, while Brazilian imports in 2023 were more than 17 GW”, he stated.
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Answers of 6
Why not exempt panels from national factories? Out with PT!
And then come the tax benefits of PPB PADIS, for importers/assemblers that apply in the marketing of “we are building factories in Brazil”, (everything imported without paying PIS/COFINS and with FINAME BNDES, an import channel with ZERO), electric cars, etc... generating in these solar module assemblers less than 3% of the jobs in the sector, and because of this 3% and all the glamorization surrounding these factories, the other 97% of jobs are under judgment that one day, the eagles will decide, and not the swamp ducks.
It doesn't justify it, but it does explain it in part: in order to have INTERMITTENT, there has to be CONSTANT, otherwise the SIN/ONS will go into a tailspin. It seems that no one in the renewable energy sector cares about this, but it's REAL!!! Historically, even with the EPE of the jabuticaba run-of-the-river, we don't have simple strategies, a lot of blah blah blah, only complexity, problems without solutions, something for politicians and not scientists/technicians. The impression is that the ducks, over there in the swamp, decide, and no one asks the eagles, with a panoramic view, what the next step will be. That's why we waste 40 billion in Belo Monte for nothing, (it generates 2,9% of the installed capacity), and we fail to build other smaller hydroelectric plants with reservoirs, substations, transmission lines, and other important infrastructure works, with this same 40 billion. Time passes, and the bill arrives, and if it doesn't rain it gets worse, if it burns even worse, strategically, a ZERO rating for the last 25 years...
The regulation of a sector, an action so desired by those seeking legal stability in business, also involves the study of tax aspects throughout the chain, a logical situation anywhere in the world, except here in our country.
How can we support a decision that will protect only 5% of the players that are part of the entire chain, to the detriment of the rest that actually move this market and can place Brazil in a prominent position on the world stage?
Once again our government shows incompetence, short-sightedness and ability to miss the boat of history……
Dear Sirs, the federal government reminds me of the famous saying: “Do as I say, not as I do.” This is a time of astonishing insensitivity. The climate summit is being held in Azerbaijan, and the country is hosting the G20 and COPE 30 next year. It will repeat the demagogy and truth of the above thought. It is making a gross mistake and it has already been shown that this is not the best path. Imports and exports are a two-way street, and reckless protectionism always ends up in a mess. As always, the lobby works in favor of a few and to the detriment of the majority. As I have said: Brazil is a strange country!
At least it's not the most expensive one, which is the inverter.