Brazil’s government has decided to eliminate import taxes on essential food products to help reduce prices.
The list of exempted products includes coffee, olive oil, sugar, corn, sunflower oil, sardines, cookies, pasta, and meat.
This announcement came from vice president Geraldo Alckmin, who also serves as the minister for industry and trade, following a meeting led by President Lula with relevant ministers from agriculture, agrarian development, finance, and other government departments.
Alckmin stated, “These are measures to reduce prices, to benefit citizens so that they can maintain their purchasing power and have their basic food basket at a better price.”
Furthermore, he emphasized, “This also stimulates the production and commerce sectors. All of these are initiatives, from regulatory measures to tax ones, in which the government is failing to collect revenue, giving up taxes to favor price reductions.”
Currently, Brazil’s import tax rates for these food items range from 7.2% (for corn) to 32% (for sardines).
In addition, the government plans to raise the import quota for palm oil from 60,000 to 150,000 metric tons.
Notably, the Brazilian government is proposing changes to its food inspection regulations. This move aims to extend the jurisdiction of Brazil’s Municipal Inspection Service to a national level.
The SIM (Serviço de Inspeção Municipal) is a regional food safety inspection body responsible for regulating animal products. Currently, items processed under SIM standards can only be sold within the borders of a city. The proposed plans would allow products certified locally to be sold nationwide. This measure includes items like liquid milk, honey, and eggs.
Minister Carlos Fávaro, Brazil’s minister of agriculture and livestock, articulated that these changes would create more opportunities for Brazilian farmers. He remarked, “For one year, we will apply the effects of the SIM to the entire Brazilian territory. To those products that are cleared of being at risk of potential health problems – without any loss in food quality …”
Simultaneously, the Brazilian government is intent on boosting domestic production of basic food items. According to a government statement, the National Supply Company (Conab) will invest in establishing “regulatory stocks.”
Paulo Teixeira, minister of agrarian development and family agriculture, added, “We will have a set of products that will be subsidized to offer to Brazilian society, focusing on the basic food basket.”
