Government eliminates import tariff on meat, wheat, crackers and 4 other foods

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Government eliminates import tariff on meat, wheat, crackers and 4 other foods

Camex (Chamber of Foreign Trade) reduced import tariffs on two types of steel rebars and, in yet another initiative to try to reduce pressures on inflation, zeroed the rates for a list of food products, the Ministry of Economy said on Wednesday. thursday (11).

The items that will have the tax cut as of this Thursday, valid until December 31 of this year, will be included in the list of exceptions that can be used by Brazil in Mercosur to unilaterally change tariffs, without the need for discussion with the other components of the block.

Among the affected items, the import tax on two types of steel rebar (CA50 and CA60) was reduced from 10.8% to 4%.

In foodstuffs, tariffs on boneless beef (10.8% before), chicken pieces (9%), wheat flour (10.8%), wheat (9%), corn in grains (7 .2%), cookies and crackers (16.2%) and other bakery and pastry products (16.2%).

There was also a cut in the tariff for two agricultural inputs — sulfuric acid, from 3.5% to zero, and the fungicide mancozeb, from 12.6% to 4%.

The cost of the measure is estimated by the Ministry of Economy at R$ 700 million this year.

A government source even said on Monday that a zero import tax cut on steel was being considered, not just a partial reduction for specific items. The news sent steel company stocks down on Tuesday, when executives from Aço Brasil, which represents the sector, met with Economy Minister Paulo Guedes to try to convince the government to ignore the civil construction sector’s plea for a reduction rebar rates.

According to the executive secretary of the Chamber of Foreign Trade (Camex), Ana Paula Repezza, the reduction for food and agricultural products was made with the aim of curbing the inflationary impulse.

Repezza said that although the rebar tariff cut will eventually have an impact on inflation, the demand in this case was technical and had been under analysis for eight months in the government. According to her, Camex has not received new requests for tariff cuts for other types of steel products.

Under Mercosur rules, Brazil is entitled to include up to one hundred components in the tariff exception list. To place the items announced this Wednesday, others were removed, such as medicines, LED lamps, aluminum conductor cable and mozzarella cheese.

In the case of products removed from the list, the department’s technicians argued that the decision was taken due to the low flow of imports of these items or because there will be situations with effective tax reduction – in the case of products that had been included in the list to be taxed. above the TEC rate.

In March, Camex had already zeroed the rates for ethanol and six types of food — ground coffee, margarine, cheese, pasta, sugar and soy oil. At the time, the Ministry of Economy argued that the initiative was part of an effort to contain high inflation.

In an attempt to mitigate pressures on prices, the government also adopted other measures in the area. In November, when implementing, without Mercosur support, a 10% rate cut for a group of products that encompasses 87% of the country’s tariff universe, the government said that there was urgency to deal with the rise in prices.

This Wednesday, the IBGE reported that inflation in Brazil reached the highest rate for April in 26 years and surpassed the 12% mark in 12 months, with fuel and food prices putting pressure on consumers’ pockets.

“We know that inflation is a global phenomenon and that we have to reduce the impact on our population,” said the executive secretary of the Ministry of Economy, Marcelo Guaranys.

According to him, the government continues to seek dialogue with Mercosur to reduce the bloc’s Common External Tariff.

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