Brazil lifts import taxes on nine food items temporarily to combat inflation. The exemption covers various products, including beef, coffee, and olive oil, activating zero tariffs effective Friday. Vice President Alckmin announced the initiative aims to ease local prices while predicting a limited fiscal impact due to the temporary nature of the measure.
On Thursday, Brazil’s Chamber of Foreign Trade, known as Camex, approved the temporary removal of import taxes on nine food items to alleviate inflation pressures. This exemption targets boneless frozen beef, coffee beans (both roasted and unroasted), corn for consumption, selected uncooked pasta, cookies, extra virgin olive oil, crude sunflower oil, cane sugar, and preserved sardines, with the latter limited to 7,500 tons. The tax rates, which range from 7.2% to 32%, have been set to zero, effective immediately Friday.
The specified food items subject to the duty reduction are categorized under the Southern Common Market (Mercosur) Nomenclature (NCM), comprising nine food types across ten NCMs. The reduction for coffee applies to both roasted and unroasted beans as clarified by officials. Brazilian Vice President and Minister of Development, Industry, Trade, and Services, Geraldo Alckmin, confirmed that this resolution will be published in the Federal Official Gazette on Friday, allowing for its implementation.
The zero tariff on sardines will pertain solely to the specified import quota of 7,500 tons. Simultaneously, an enlarged import quota for palm oil has been announced, increasing from 60,000 to 150,000 tons over a year, with its corresponding tax rate remaining unchanged at zero. Alckmin projected the anticipated financial impact of the zero tariff to be around $110 million annually while suggesting the short-term nature of the exemption would mitigate potential losses to the treasury. “As I expect [the zero import tax] to be more transitory, the impact should be less,” he stated.
In conclusion, Brazil’s decision to eliminate import taxes on nine essential food items aims to ease inflationary pressures on local consumers. This strategy highlights the government’s proactive approach to stabilizing prices while recognizing the temporary nature of the relief effort. The initiative reflects a targeted effort to improve affordability in the face of rising costs, reinforcing the nation’s commitment to economic stability.
Original Source: en.mercopress.com
