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Government reduces tariffs on imports of food and inputs for agricultural production

The aliquots of wheat flour, other wheats and mixture of wheat and rye were zeroed. - Photo: Image bank

 

The Federal Government has zeroed the food import tax rate as a measure to help fight inflation. It also reduced rates on two inputs for agricultural production and steel rebar. The decision was announced this Wednesday (11/05) at a meeting of the Executive Management Committee of the Chamber of Foreign Trade (Gecex/Camex). The reductions take effect on Thursday (12/05) and are valid until December 31, 2022.

 

The reduction was made via inclusion in the List of Exceptions to the Mercosur Common External Tariff (LETEC). The aliquots of frozen boneless beef meat, frozen chicken pieces and offal, wheat flour, other wheats and mixture of wheat with rye, corn grains, crackers and biscuits and other bakery and pastry products were zeroed. By cutting the import tax, the Government makes the purchase of products manufactured abroad cheaper. In March, Gecex had already zeroed the aliquots of six foods.

 

The rate is a percentage used to calculate the final amount of a tax that will be paid by an individual or legal entity. According to the Ministry of Economy, the measure prioritized items that have the greatest impact on the consumption basket of the poorest sections of the population, with the aim of helping to combat inflation, considering goods that are part of the National Consumer Price Index ( INPC).

 

"Some specific products, which have a great impact on the population, we have sought to make large reductions in rates", said the executive secretary of the Ministry of Economy, Marcelo Guaranys. “We know that these measures do not reverse inflation, but they increase the contestability of markets. A product that is starting to grow a lot in price, given the greater possibility of importation, entrepreneurs think twice before increasing the product so much”, he explained.

 

Agricultural inputs

In addition to food, there was a change in the import tax rates for two inputs used in agricultural production. One of them is sulfuric steel, used in the fertilizer production chain, whose rate was zeroed.

 

The other, the fungicide Mancozeb, had its import tax reduced from 12.6% to 4%. The product is used as an agricultural pesticide in rice, potato, beans, soy, lettuce, corn and tomato crops, among others. National production accounts for approximately 31% of consumption in the country and the reduction in the rate should help combat the rise in food prices in Brazil.

 

For months, Gecex analyzed the civil construction sector's request for a reduction in the rates of steel products. At the meeting, a decision was taken to increase the rates for CA50 rebar and CA60 rebar from 10.8% to 4%.

 

“The intention is to generate more competition to reduce prices so that we can also positively impact the civil construction sector that generates so many jobs in Brazil”, said the executive secretary of the Chamber of Foreign Trade (Camex), Ana Paula Repezza.

 

Category

Finance, Taxes and Public Management

Tags: Tax ReductionNew RatesMinistry of Economy