Brazil has eliminated import taxes on nine food items to combat inflation. This includes products like beef, coffee beans, and olive oil, effective immediately. The tax exemptions, which range from 7.2% to 32%, aim to ease consumer prices. Vice President Alckmin noted a projected economic impact of US$ 110 million annually, but emphasized the temporary nature of the policy.
Brazil’s Chamber of Foreign Trade (Camex) has approved the temporary removal of import taxes on nine food items to help reduce inflation. Effective immediately, this exemption includes zero tariffs on items such as boneless frozen beef, various coffee beans, corn (not for sowing), specific pasta types, cookies, extra virgin olive oil, crude sunflower oil, cane sugar, and preserved sardines, limited to 7,500 tons.
The removed taxes, which ranged from 7.2% to 32%, aim to curb inflation as the measure’s effectiveness starts as of Friday. This decision rests on the Southern Common Market (Mercosur) Nomenclature (NCM) codes, with the coffee tariff reduction benefiting both roasted and unroasted variants.
Vice President Geraldo Alckmin affirmed this change on Friday (14), coinciding with the publication of the Camex resolution in Brazil’s Federal Official Gazette. Additionally, the import quota for palm oil has been increased from 60,000 to 150,000 tons for a year, maintaining a zero tax rate.
Alckmin projected that this measure could generate an annual impact of US$ 110 million on Brazil’s economy. However, he suggested that the financial implications would be limited due to the temporary nature of the tax exemption, stating, “As I expect [the zero import tax] to be more transitory, the impact should be less.”
Brazil has enacted a temporary policy to eliminate import taxes on various food items with the goal of reducing inflation. The initiative includes nine specific goods and is expected to have a significant, albeit limited, financial impact on the economy. Officials stress that the measure is temporary, underscoring intentions for short-term stabilization in consumer prices.
Original Source: en.mercopress.com
