A legislative decree wants to overturn the tax-free status of cheese imports

The Legislative Decree Project 74/22 wants to overturn the federal government’s decision to include mozzarella cheese in the list of goods exempt from the Mercosur Common External Tariff.

For all effects, this measure reduces to zero the import tax rate levied on the product until 12/31/2022.

The decree project is currently in discussion in the lower chamber of the Brazilian Congress.

According to the Executive branch, the decision taken by the Executive Management Committee (Gecex in Portuguese), an agency of the Ministry of Economy, aims to reduce the pressure of some products on the National Consumer Price Index (INPC), on the main inflation indicators in Brazil.

In addition to mozzarella cheese, the measure also zeroed out aliquots of margarine, pasta, coffee, and soy oil.

The authors of the legislative project, deputies Zé Neto and Reginaldo Lopes, on the other hand, argue that the unilateral tariff reduction created by the Gecex resolution is “sudden, very high, and has severe implications for national production chains.”

“In the case of mozzarella cheese, the import tax charged was 28% and, overnight, it was zeroed to encourage imports until the end of this year. This measure directly impacts the national dairy industry, which is suffering from unfair competition with foreign producers,” say the authors.

For them, the argument of reducing inflation makes no sense.

“The tariff decrease will significantly increase mozzarella cheese imports, even from markets heavily subsidized by government programs. For example, the United States distributed more than $1.2 billion in direct transfer subsidies under its ‘Dairy Margin Protection Program’ in 2021 alone. Importing subsidies means exporting unemployment in the Brazilian countryside,” the authors conclude.

The legislative project will be analyzed by the commissions of Economic Development, Industry, Commerce and Services; Finance and Taxation; and Constitution and Justice and Citizenship. It will then be discussed and voted on in the Plenary.

Source: Canal Rural

To read the full original article, please go to:

https://www.canalrural.com.br/noticias/pecuaria/projeto-anula-resolucao-que-zerou-imposto-sobre-importacao-de-queijo/

Sharing is caring!