The Brazilian Congress will no longer vote for corn taxation

Bill 2.814 of 2021 was withdrawn from the Lower Chamber of the Brazilian Congress this Wednesday, February 2. The proposed legislation allowed the creation of a tax on corn exports until December 31, 2022.

According to the bill’s original draft, the proposal aimed to ensure the domestic supply of maize.

However, the proposal failed to consider that Brazil’s grain output exceeds domestic consumption, which, according to Aprosoja-MT, does not justify limiting exports. Another critical point raised by the Association is that rural producers do not have control over the destination of their yields. Instead, the acquiring industry redirects the flow based on pre-signed contracts both domestically and internationally.

“It is also noteworthy that food taxation goes against the UN Sustainable Development Goal 2 (SDG 2) to eradicate hunger and malnutrition by 2030. In addition, it is a strategy that has provenly failed at Argentina, which suffers from a food 50% inflation rate according to official data,” stressed the president of Aprosoja-MT, Fernando Cadore.

After negative repercussions from the grain producers, congresswoman Soraya Manato, author of the bill, decided to ask for the proposal to be withdrawn.

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