Brazil Trade Chamber Implements Import Tax Reductions on Food Products

Brazil’s trade chamber, Camex, has approved the removal of import taxes on specific food items to address food inflation, as announced by Vice President Geraldo Alckmin. The tax cuts aim to lower food prices and are expected to cost 650 million reais if sustained for a year. The initiatives apply to various products including beef, coffee, and sugar.

Brazil’s trade chamber, known as Camex, has decided to eliminate import taxes on select food products in an effort to combat rising food inflation. This unanimous decision was announced by Brazilian Vice President Geraldo Alckmin, who also occupies the position of Minister of Trade, Industry, and Development.

Alckmin emphasized that these initiatives are “emergency measures to reduce taxes, to reduce food costs and to help… reduce inflation, especially food inflation,” particularly after similar tax cuts were implemented the previous week.

The newly approved tax exemptions will be applicable immediately and will remain in effect as long as deemed necessary to alleviate food prices. Alckmin anticipates these measures will incur an estimated cost of 650 million reais (approximately $112.07 million) if they persist for a full year, though he believes their duration will be shorter.

The import tax exemptions will apply specifically to various food items, including boneless beef products, roasted coffee, coffee beans, corn, olive oil, sugar, cookies, pasta, and sardines. The Camex trade chamber, operating under Alckmin’s ministry, is responsible for the formulation of the government’s trade policies and guidelines.

In summary, Brazil’s Camex has introduced import tax cuts on certain food products as a direct response to soaring food inflation. The unanimous decision aims to reduce food prices and stimulate the economy, with a specified list of foodstuffs included in the exemptions. Vice President Alckmin anticipates a financial impact of 650 million reais, with measures enacted for as long as necessary to support the citizens.

Original Source: money.usnews.com