Brazil passes law to boost internet of things

The move is expected to generate over 10 million jobs

Published on 17/12/2020 - 15:57 By Agência Brasil - Brasília

The law stimulating the internet of things has been sanctioned by President Jair Bolsonaro. The move is expected to warm up the sector, make the technology cheaper, attract investment to Brazil, and generate over 10 million jobs in the coming years, according to the Ministry of Communications. The legislation should come into force on January 1, 2021, with tax benefits lasting up to 2025.

The main idea behind the internet of things (IoT) is to make life easier for users and clients, simplifying the use of devices, and even automating tasks. Examples include connected refrigerators with features like inside views and notifications when users run out of products, and even agricultural machines capable of controlling irrigation and sending data on humidity, acidity, and soil nutrients, making crops and harvests more efficient.

Under the new rule, some taxes on telecom stations making up the machine-to-machine system were slashed to zero. The law also lays out rules on the licensing of devices with Brazil’s telecom watchdog Anatel.

Today, roughly 15 billion devices are connected to the internet worldwide. The expansion of IoT and the tax breaks promoted by the government, this number is believed to go beyond 35 billion in 2025.

“The measure is believed to include Brazil among the world’s biggest powers in the internet of things market. Another positive aspect is that tax breaks should stimulate the development of devices with 5G technology,” Brazil’s Communications Minister Fábio Faria.

Translation: Fabrício Ferreira -  Edition: Kelly Oliveira / Denise Griesinger

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