The Brazilian government facing the inflationary challenge, as in most of the rest of the world, and particularly when it comes to food prices and the millions of Brazilians who survive on a daily ration, has decided to temporarily reduce tariffs on eleven products. The decree came into effect on May 12 and will continue until the end of the year.
The idea is to make the purchase of these foreign products cheaper and more affordable to the final consumer.
Herlon Alves Brandão, the Undersecretary of Intelligence and Foreign Trade Statistics at the Secretariat of Foreign Trade, said that the measure is expected to have an impact of up to R$700 million ( some US$ 150 million) in federal tax revenue, which may vary depending on the volume of imports, countries of origin, exchange rate and delivery.
The list of products benefitting from a lower tariff:
Frozen boneless beef: from 10.8% to 0%
Frozen chicken pieces and offal: from 9% to 0%
Wheat flour: from 10.8% to 0%
Wheat and wheat-rye blends: from 9% to 0%
Cookies and biscuits: from 16.2% to 0%
Other baked, pastry, and biscuit industry products: from 16.2% to 0%
Corn in grains: from 7.2% to 0%
Sulfuric acid: from 3.6% to 0%
Fungicides: from 12.6% to 4%
Wire rod of iron or non-alloy steel, notched steel, and/or with ribs, grooves, and other deformations: from 10.8% to 4%
Iron or non-alloy steel bars: from 10.8% to 4%