Brazil Eliminates Import Tax on 11 Food Items to Combat Inflation

Brazil's Foreign Trade Chamber (Camex) has approved the elimination of import taxes on 11 food items in an effort to control food inflation. The measure, effective since last Friday, includes products such as boneless beef, roasted coffee, corn, olive oil, sunflower oil, and canned sardines. A quota of 7,500 tons has been set for sardines with zero tax. The decision aims to increase the supply of selected products in Brazil, thereby reducing prices and helping to meet inflation targets, according to the Ministry of Development, Industry, Commerce and Services (MDIC). Vice President Geraldo Alckmin estimates the measure could cost the government R$650 million annually if maintained for a year, but expects it to be temporary. The government is also prioritizing basic food basket products in its financing plan and strengthening regulatory stocks. Meanwhile, the state of Rio Grande do Norte in Brazil is set to increase its ICMS tax rate from 18% to 20% starting April 20th, impacting sectors like energy and fuel. Local industry groups express concerns about reduced consumption and competitiveness. The measure aims to balance public accounts and ensure salary revisions.