Brazil eyes lower import tax on some food products
Food products that are cheaper abroad will see reduced import levies
27 January 2025
2 minute read
By: Brazil's government is planning to reduce import taxes levied on food products that are currently more expensive domestically than abroad, Reuters reported, citing Presidential Chief of Staff Rui Costa on Friday.
Costa told reporters that the government would conduct a study on the matter and focus on "any and all products that are cheaper overseas."
The announcement followed a meeting between President Luiz Inacio Lula da Silva and cabinet members to discuss ways to lower food prices, after Lula called for action earlier this week.
Inflation closed 2024 at 4.8%, above the official target of 3%. Food prices were a key driver with a 7.7% rise, weighing on the popularity of the leftist leader.
Costa said 2025 is expected to bring a record crop, which should boost supply and reduce food costs. He also dismissed proposals floated in recent media reports, such as the creation of a state-run supermarket chain.
"The government is convinced that prices are determined by the market, not artificially manipulated," he said.
"No heterodox measures will be adopted. There will be no price freezes, price controls, or inspections ... no state-run supermarkets or stores to sell products. These things do not exist."
Costa said Lula urged the government to focus resources on existing agricultural policies to stimulate the production of staple goods.
He also signalled that another measure under consideration would aim to reduce the intermediation costs of operations involving meal vouchers, which are provided to formal workers by employers in Brazil.
