São Paulo tilapia import tax ends up covering all fish and seafood

A decree signed last week by São Paulo Gov. Tarcísio de Freitas to tax imported tilapia has had a broader side effect: all imported fish and seafood are now subject to the same charge. Products such as salmon, cod, pollock, hake, dogfish, sardines and pangasius, previously exempt, are now subject to a 7% ICMS tax, the same rate applied to tilapia.

A tax or suspension on imported tilapia had been requested by producer and industry groups, including the Brazilian Fish Farming Association, Peixe BR, and the Brazilian Fish Industries Association, Abipesca. Vietnamese tilapia fillets began entering Brazil last year, putting strong pressure on domestic producers because they were cheaper than the cost of producing Brazilian fillets.

According to Datamar data, Brazil imported 500 TEUs of tilapia from Vietnam in the first four months of 2026. The chart below shows the expansion of imported supply of the product:

Tilapia Imports from Vietnam | Jan 2023 – Apr 2026 | TEUs

Source: DataLiner (click here to request a demo)

Emerson Esteves, treasurer of Peixe SP, said São Paulo, unlike other states, does not have legislation allowing tax exemptions to be changed for a single product. That is why the measure ended up affecting other fish and seafood products as well.

“Legislation in Paraná and in other states such as Santa Catarina and Minas Gerais allows exemptions to be removed for just one product. In those states, the government raised ICMS to as much as 22% on imports of tilapia fillets,” he said.

Soon after the decree was announced, the Brazilian Association for Fish Promotion, Abrapes, which represents seafood importers, trading companies and distributors, asked the São Paulo government to restore the exemption for other fish and seafood products, as other states have done. The association argued that an industry with 110 companies and 60,000 direct and indirect jobs should not be penalized.

“We support taxing tilapia, but that cannot affect all imported fish and seafood. The decree makes operations unviable for all importing industries in our state, which imports 70% to 80% of the fish it processes,” Abrapes President Julio César Antonio told Valor. He added that the request has the support of the São Paulo State Fishing Industry Union, Sipesp, and the Federation of Industries of the State of São Paulo, Fiesp.

Antonio said the governor quickly understood the industry’s concerns, asked his team to work quickly on a solution and has already received a proposal to exempt all imported fish and seafood products not found in Brazilian waters, while keeping the ICMS charge on tilapia. He said a task force was created within the state Finance and Agriculture departments, and Abrapes expects a solution within 15 to 30 days. So far, he said, there has been no loss.

Peixe SP’s treasurer also said he expects a better solution for tilapia. According to Esteves, the importers now complaining are the same companies that bring in tilapia fillets, focusing only on price rather than quality and selling the product without identifying it as coming from Vietnam. He said Abrapes had never been concerned about the damage caused to Brazilian tilapia farming by imported fillets, which he said can be up to 20% cheaper because they do not meet the same quality and sanitary standards as fish produced in Brazil.

Esteves said the 7% ICMS charge helps ease the problem but does not solve it. In his view, a fairer rate would be 14%.

In a statement, São Paulo’s Agriculture and Supply Department said only that it is monitoring the issue and maintaining permanent dialogue with different links in the fish and seafood chain, especially producers in the state.

“The measures adopted are intended to ensure balanced competitive conditions for those who produce, generate jobs and create wealth in the state and in the country. Any impact on importers will be addressed by the Finance and Planning Department through instruments provided for under tax legislation, if adjustments are needed,” the department said.

Proposed import ban

In Brasília, a bill under consideration in the Chamber of Deputies would ban imports of tilapia and related products into Brazil, covering everything from live fish and fingerlings to chilled, frozen, filleted and processed products intended for human and animal consumption. The bill, already approved by the Agriculture, Supply and Rural Development Committee, provides for fines and the destruction of cargoes.

To become law, the bill still needs approval from other committees and the lower house plenary before moving to the Senate.

Source: Globo Rural

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