BRASILIA (Reuters) – The Brazilian government on Monday announced a new 10% cut in the imported goods tax rate on a majority of products bought abroad in a bid to ease inflationary pressures.
The Economy Ministry’s tax cut, which covers about 87% of the country’s customs goods, was approved after a meeting of Brazil’s Foreign Chamber of Commerce late Monday.
A source had previously confirmed the information to Reuters.
“Today’s measure, in addition 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,” said Secretary of Trade Lucas Ferraz said in a statement to the press.
As early as November last year, the government unilaterally cut Common External Tariff (TEC) rates by 10% without the consent of all Mercosur members, saying there was an urgent need to deal with rising prices.
In April, the government announced its intention to encourage another 10% cut in import tariffs.
The country’s Economy Ministry is committed to gradually opening up the economy and recently introduced cuts to the Industrial Tax (IPI) to boost the competitiveness of the country’s industry and allow the import tax to be lowered again.
An initial 25% reduction in IPI has been increased to 35% to receive Manaus Free Zone products. However, the measure was taken to court and is currently partially suspended.
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