Brazil’s Gecex initiated a temporary removal of import taxes on nine food items to counter inflation. Effective September 14, this measure includes products like boneless frozen beef and coffee. The initiative aims to reduce consumer prices and is projected to impact government revenue by USD 110 million annually, though the Vice President noted the temporary measure would minimize its financial effect.
The Brazilian Chamber of Foreign Trade’s Executive Management Committee (Gecex) approved a temporary removal of import taxes on nine food items as part of efforts to combat inflation. This exemption covers products including boneless frozen beef, coffee beans (both roasted and unroasted), corn (not used for sowing), specific uncooked pasta, cookies, extra virgin olive oil, crude sunflower oil, cane sugar, and preserved sardines, with the latter limited to an import quota of 7,500 tons. Previously imposed taxes, which ranged from 7.2% to 32%, will be reduced to 0% starting Friday.
The items benefiting from this tax elimination have been categorized according to the Southern Common Market (Mercosur) Nomenclature (NCM) codes. Vice President Geraldo Alckmin confirmed that the tax reduction would take effect on Friday, September 14, as per the announcement in the Federal Official Gazette. Furthermore, the import quota for palm oil has been raised from 60,000 to 150,000 tons for a period of 12 months, while maintaining a zero tax rate on imports.
Alckmin forecasted that the zero tariff initiative would have an estimated annual impact of USD 110 million on the nation’s revenue; however, he suggested that the financial blow would be mitigated due to the measure’s temporary nature. He stated, “As I expect [the zero import tax] to be more transitory, the impact should be less.” This initiative reflects the government’s implementation of strategies aimed at reducing inflation for Brazilian consumers.
In conclusion, Brazil’s recent decision to eliminate import taxes on nine essential food items exemplifies the government’s proactive approach to combat inflation. The initiative, effective from September 14, intends to provide temporary relief for consumers while addressing rising food costs. Although it is projected to have a significant economic impact, Vice President Alckmin emphasized that its limited duration will mitigate overall fiscal damage.
Original Source: en.mercopress.com
