BRAZIL ISSUES NEW FREIGHT TAX

   Brazil’s Ministry of Development said it will impose an income tax of 15 percent on ocean freight starting Jan. 1.
   The tax will be enforced by Brazil’s Federal Reserve and levied against freight that is remitted from Brazil to companies outside the country. Only countries that have signed double-taxation avoidance agreements with Brazil, such as Argentina, Chile, Colombia, India, Russia and South Africa, will be exempt.
   Industry groups and companies, such as the Baltic and International
Maritime Council and Centro Nacional De Navegacao Transatlantic, are fighting the tax.
   "By pointing out the consequences created by this tax, including
increased transportation costs and the lack of advanced notice, we hope to convince the Brazilian authorities to cancel it," said Thomas Timlen of BIMCO.