Minas Gerais government increases taxes on imported powdered milk

The Government of Minas Gerais has taken action against what it deems unfair competition for milk producers, who are facing a surge in powdered milk imports from Mercosur countries.

Issued in the Official Gazette on Thursday (28/4), Decree No. 48,791 stipulates that all powdered milk imports into Minas Gerais will be subject to taxation, thereby suspending the benefits previously enjoyed by taxpayers. This translates to an increase in the tax rate for powdered milk imports from 0% to 12%, and for smaller quantities, the rate jumps from 2% to 18%.

This measure, effective for 90 days, was announced by Governor Romeu Zema during the “Minas Grita pelo Leite” event, which convened around 7,000 producers at Expominas, Belo Horizonte, organized precisely to shed light on the crisis triggered by imports.

The influx of imports has forced many milk producers in Minas Gerais to abandon dairy farming, resulting in a decline in prices paid to producers. In January 2024, the price dropped to R$ 2.11 per liter, down from R$ 2.51 in the same period of 2023 and R$ 2.71 in 2022.

Despite being one of the world’s leading milk producers, with Minas accounting for 9.5 billion liters (27% of national production), Brazil imported a volume equivalent to 2.8 billion liters of powdered milk in 2023, primarily from Argentina and Uruguay, benefiting from exemption from the Common External Tariff due to Mercosur. These imports have disrupted the milk production chain.

In 2023, powdered milk imports in Minas reached US$ 62.6 million, and the trend continues to grow in 2024. In the first two months of this year, imports have already hit US$ 12.7 million, constituting 20.3% of the 2023 value.

Source: Módulo FM

Click here to read the original news article: https://modulofm.com.br/artigo/governo-de-mg-aumenta-tributacao-sobre-leite-em-po-importado

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