Government cuts import tax on products used in the manufacture of plastic

The government decided this Wednesday (3) to reduce the import tax on products used in the manufacture of plastic. According to members of the Executive, the measure had been requested by different segments of the national industry and has the potential to reduce costs throughout the production chain.

The decision was taken by the executive management committee of the Chamber of Foreign Trade (Camex) of the Ministry of Economy. The collegiate is chaired by Minister Paulo Guedes (Economy) and is also composed of representatives from other ministries and the Presidency of the Republic.

The cut covers glyphosate, ethylene copolymers and different types of resin. With the measure, the import tax rates for these items will be between 3.3% and 4.4%, and currently they range between 9.6% and 11.2%.

According to the government, the tariff reduction for these products took into account the “need to face supply problems in certain production chains, with different degrees of severity, and significant cost increases in the inputs of other chains”.

“The measure also aims to improve the allocative efficiency of resources in the economy, with potential gains in competitiveness for different industrial segments”, says the government. The cuts will last for one year and are expected to take effect on August 5, 2022.

The view is that, despite having some positive effect to contain inflation, the logic of the initiative is to proceed with measures to reduce import tariffs and trade liberalization. In addition, to fully achieve the market monopoly seen today by the government in the plastics sector.

Currently, Braskem is the largest producer of thermoplastic resins in the Americas. Sought, the company informed that it will not comment on the matter.

Representatives of Abiquim (Brazilian Chemical Industry Association) said they were not yet aware of the decision and, therefore, preferred not to comment.