Program offers special loans to buy computers

12/05/2005 - 22h00

Érica Santana
Reporter - Agência Brasil

Brasília - Families with monthly incomes ranging from three to ten minimum wages (US$ 365 to US$ 1,217) will be able to pay less for computers through the Brazilian government's digital inclusion program, PC Connected. The program provides tax exemption for industries and special loans for consumers, at monthly interest rates of up to 2%. All the computers acquired through the program will contain free software. The announcement was made yesterday (12) by special Presidential advisor Cezar Alvarez.

79% of the Brazilian population has never used a computer, 89% has never accessed the internet, and only 14.4% has regular access to computers. According to Alvarez, the program will offer two direct advantages: the 100% tax exemption on social contributions (PIS/Cofins) at the point of sale to the final consumer - which means that the price of equipment currently available on the market will be reduced 9.25% - and the campaign against piracy.

"This is a a very substantial exemption. The industry is cognizant that there has never been a tax policy of these proportions, and we thereby hope to combat contraband and the so-called "gray" market, products of poor quality," the advisor declared.

According to Alvarez, the program also has industrial policy implications. "We shall produce more, for more people, and the greater the number of people who buy, the more the employment, income, production, and competitiveness that will be generated." Beneficiaries of the PC Connected program will be able to buy home computers with the minimal hardware configuration required by the government, 27 installed software programs, technical support, and the right to a special dial-up internet connection program. The price will not exceed US$ 568 (R$ 1,400), financed in up to two years and with the possibility of 15 hours of monthly internet access at a monthly cost of US$ 2.84 (R$ 7.50).

The program will use resources from the Workers' Assistance Fund (FAT) to provide loans to consumers.

Translation: David Silberstein