Brazil slashes import taxes across wide range of goods

The federal government has decided on a ten percent slash in import tax rates across a wide range of products. The move is said to be aimed at mitigating the impact of the pandemic and the war between Russia and Ukraine on the prices of supplies for the productive sector.

Within the scope of the measure are such products as beans, meat, pasta, cookies, rice and construction materials. In total, 6,195 goods, nearly all imported goods, will see a tax cut. The change was announced Monday evening (May 23) at a press conference with the ministry's economic staff. The move comes in addition to another ten percent reduction, from November 2021.

"Today's measure, added to the ten percent reduction made last year, brings Brazil's tariff level closer to the international average, particularly that of the countries of the Organization for Economic Cooperation and Development (OECD)," said the ministry's Foreign Trade Secretary, Lucas Ferraz. The measure should stay in force until the end of 2023.

In the view of the economic team, the slash will bring about an accumulated impact of BRL 533.1 billion on the increase in the country's gross domestic product (GDP), BRL 376.8 billion on investments, BRL 758.4 billion on the increase in imports and BRL 676.1 billion on the increase in exports.

If confirmed, the government's forecasts would result in a BRL 1.434 trillion surge in foreign trade (imports plus exports), in addition to a decline in the economy's general price level.