Brazil gov’t triples import tax on natural rubber

On Tuesday (15), the Federal Government of Brazil sanctioned a threefold increase in the tax rate for the importation of natural rubber.

Consequently, the tax will surge from 3.2% to 10.8%, and this alteration will endure for 24 months.

Presently, Brazilian heveiculture (the cultivation of rubber trees for latex extraction) confronts challenges arising from substantial declines in the global price of elastomers, leading to diminished competitiveness compared to imported products from Southeast Asian nations.

The chart below displays Brazil’s natural rubber imports (hs code 4001) between Jan 2019 and Jun 2023. The data is from DataLiner.

Natural Rubber Imports | Jan 2019 – Jun 2023 | TEU

Source: DataLiner (click here to request a demo)

Carlos Fávaro, the Minister of Agriculture and Livestock, emphasized that “the industry has resumed consuming in Brazil, but it must source them from Brazilian producers. Today, we have ratified a 10.8% import tax on natural rubber. This measure will fortify producers, the production chain, and the industry as a whole.”

He explained that earlier in the year, the government needed to reintroduce taxation on imported tires in Brazil, which had been rescinded by the preceding administration.

“This effort was executed with tremendous dedication by our Secretary of Commerce and International Relations, Roberto Perosa, along with our vice president Geraldo Alckmin. This marks a pivotal step that bolsters the entire natural rubber ecosystem, from producers to the national industry.”

Fávaro further clarified that another key decision has been taken in favor of Brazilian rubber. “Conab’s president, Edegar Pretto, and the entire board have already launched public campaigns to support rubber sales,” he concluded.

Source: Money Times

To read the original news report, go to: https://www.moneytimes.com.br/governo-mais-que-triplica-imposto-de-importacao-para-borracha-natural/

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