Import tax on various products is cut by the Government;  see list

Import tax on various products is cut by the Government; see list

THE Tax import was cut by 10% in several products, according to a decision by the Federal Government.

The purpose of this tax cut is, according to the Ministry of Economy, to reduce the impacts resulting from the pandemic and the war between Russia and Ukraine on the prices of inputs in the productive sector.

Will be affected by the measure especially products of supermarketin foodsuch as beans, meat, pasta, cookies, rice and construction materials, among other items.

THE Ministry of Economy also highlighted, in a note, that these items had already been cut by 10% in rates last November. Thus, adding the two cuts, the products had their import tariffs reduced by 20% or, in some cases, reduced to zero.

This is because the decision to cut taxes falls on the Common External Tariff (TEC) of the Mercosurcovering a volume of 87% of the codes.

In total, 6,195 goods, almost all goods importedwill have tax reduction. The measure was announced on Monday night, at a press conference by the ministry’s economic team. The reduction is added to another, also of 10%, in November 2021.

“Today’s measure, added to the 10% reduction already carried out last year, brings the Brazilian tariff level closer to the international average and, in particular, to the countries of the Organization for Economic Cooperation and Development (OECD)”, said the Foreign Trade secretary at the ministry, Lucas Ferraz.

The validity of this measure has a fixed term and should be in force until the end of 2023.

Data from the Secretariat of Foreign Trade (Secex), which is linked to the Ministry of Economy, emphasize that the cuts in the TEC of 10% in 2021 and 10% in 2022 will have accumulated impacts of R$ 533.1 billion of increase in the Domestic Product Gross Domestic Product (GDP) of Brazil.

In addition, this change in tax should generate BRL 376.8 billion in investments and BRL 758.4 billion in an increase in imports and BRL 676.1 billion in an increase in exports.

In other words, the increases will result in R$ 1.434 trillion of growth in the flow of foreign trade (sum of imports and exports), in addition to a reduction in the general level of prices in the economy.

What products were left out of the tax cut?

Government data indicate that, among the products that were left out of the import taxthey are:

  • textile products
  • shoes
  • Toys
  • dairy
  • peaches
  • Car’s pieces

The folder mentioned that there are 1,387 lines in the Mercosur Common Nomenclature (NCM) that were left out of the tax cut. It is worth remembering that they are the same exceptional products in the 10% cut instituted last November.

According to the secretary, this cut focuses on products from the food and beverage and derivatives segment, as a way of mitigating the situation of inflation, which reduces the purchasing power of Brazilians and ends up affecting the poorest.

The server stated that the government’s expectation is that the 20% cut will materialize for the entire Mercosur in 2022. tax.

With information from Agência Brasil

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