Brazil is anxious to bring broadband service into to more underserved areas, so the government is going to waive certain taxes in the hopes of attracting service providers to build out $44 billion in new fiber networks.
Paulo Bernardo, Brazil's communications minister said that the government would forfeit about a BRL 4 billion (USD 2.52 billion) tax.
Now, the proposal is in the hands of President Dilma Rousseff, who will either send the proposal to Congress or put it into action right away and get legislative approval later.
There is, of course, a catch. Any service provider that registers for the tax break will have to be willing to build out fiber networks in areas where there's limited communications network infrastructure.
The tax break proposal comes on the heels of the Brazilian government's move to develop a National Broadband Plan that would provide users a 1 Mbps connection for BRL 35 (USD 22) a month.
For more:
- Reuters has this article
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