Brazil’s Camex has approved a temporary removal of import taxes on nine food items, effective from November 14, to combat local inflation. The initiative aims to lower prices on essential goods and is estimated to cost the government about $110 million annually. The measure is limited to a specific import quota and is intended for short-term relief.
Brazil’s Chamber of Foreign Trade, known as Camex, has approved a temporary suspension of import taxes on nine food items to alleviate local inflation. This exemption, effective from Friday, includes boneless frozen beef, roasted and unroasted coffee beans, corn (not for sowing), certain uncooked pasta, cookies, extra virgin olive oil, crude sunflower oil, cane sugar, and preserved sardines, limited to 7,500 tons. The existing tariffs, ranging from 7.2% to 32%, will be reduced to 0% to control food prices for consumers.
Details regarding the tax exemption have been classified under the Southern Common Market’s (Mercosur) Nomenclature (NCM) codes, with nine food items organized into ten NCM categories. This classification is relevant for the dual exemption of coffee types. Vice President Geraldo Alckmin announced that the Camex resolution, permitting these reductions, would be officially published in the Federal Official Gazette on Friday, November 14.
Notably, the zero tariff on sardines applies strictly to an import limit of 7,500 tons. Furthermore, the previously discussed import quota for palm oil has also been raised from 60,000 to 150,000 tons, maintaining a zero tax rate for the next twelve months. Alckmin estimates that the tariff exemption will cost the Brazilian government approximately $110 million per annum, although he anticipates this effect will be minimized due to the temporary nature of the measure.
In summary, Brazil is temporarily removing import taxes from several food items to help mitigate inflation and support local consumers. This strategic move is limited in scope and duration, targeting specific products to provide immediate relief. Officials project a moderate fiscal impact owing to the time-limited implementation of the tax exemption policy, reflecting a focused effort to stabilize food prices.
Original Source: en.mercopress.com
