Brazil is ready to reduce the import tax rate by another 10%

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BRASILIA – The Brazilian government on Monday announced a new 10% reduction in the tax rate for a large portion of imported goods bought abroad in a bid to ease inflationary pressures.

The economy ministry’s tax cut, which covers about 87% of the country’s customs duties, was approved after a meeting of the Brazilian Foreign Trade Chamber late Monday.

A source had earlier confirmed the information to Reuters.

“Today’s measure, added to the 10% reduction already made last year, brings Brazil’s tariff level closer to the international average and, in particular, to the Organization for Economic Co-operation and Development (OECD) countries,” Foreign Secretary Trade Lucas Ferraz said in a press release. .

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In November last year, the government had already unilaterally reduced the Common External Tariff (TEC) rate by 10%, without the approval of all Mercosur members, it was necessary to deal with the rising prices.

In April, the government announced plans to introduce a new 10% cut in import duties.

The country’s Ministry of Economy supports the gradual opening up of the economy and the recent reduction in industrial tax (IPI) to increase the competitiveness of the country’s industry and enable new reductions in import taxes.

By saving goods from the Manaus Free Trade Area, the initial reduction in IPI from 25% was increased to 35%. The measure, however, was taken to court and is currently partially suspended. (Reporting by Bernardo Carrom in Brasilia

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