Brazil’s Trade Chamber Approves Import Tax Exemptions on Food Products

Brazil’s trade chamber, Camex, has unanimously approved the elimination of import taxes on select food products to combat food inflation. This initiative, introduced by Vice President Geraldo Alckmin, is set to take effect immediately and is intended to last as long as necessary. The exemptions will likely cost the government 650 million reais if maintained for one year.

Brazil’s trade chamber, known as Camex, has reached a unanimous decision to eliminate import taxes on specific food products as a measure to combat food inflation. Brazilian Vice President Geraldo Alckmin, who also holds the position of Minister of Trade, Industry, and Development, announced the decision following discussions with reporters in Brasilia.

Alckmin described these measures as “emergency measures to reduce taxes, to reduce food costs and to help, at this exceptional time, to reduce inflation, especially food inflation,” referring to the recent similar tax cuts implemented by the government.

The new tax exemptions will take effect on Friday and remain in place as long as deemed necessary to stabilize food prices. According to Alckmin, the estimated financial impact of these exemptions, if applied for a full year, would amount to approximately 650 million reais, or $112.07 million, although he anticipates a shorter duration.

The exemptions will pertain to various food items including boneless beef products, roasted coffee, coffee beans, corn, olive oil, sugar, cookies, pasta, and sardines. The Camex trade chamber operates under Alckmin’s ministry, overseeing the formulation of government trade policies and guidelines.

In summary, Brazil’s Camex trade chamber has approved the elimination of import taxes on select food items to address rising food inflation. This unanimous decision, as detailed by Vice President Geraldo Alckmin, represents an urgent fiscal measure aimed at reducing food costs. The impact of these exemptions is anticipated to be significant, with an estimated cost of 650 million reais, yet the duration is expected to be less than a year. Through these actions, the government seeks to stabilize food prices efficiently.

Original Source: money.usnews.com