Brazil: Government of Paraná proposes tax to contain imports of milk and cheese

Published 2024년 4월 8일

Tridge summary

The government of Paraná has taken decisive steps to support its local dairy industry against the influx of imported powdered milk and mozzarella cheese by revising the ICMS tax rates. Imports of these products, which were previously exempt, will now be subject to a 7% ICMS rate. This policy aims to mitigate the rising tide of imports, especially from Mercosur countries, that have been challenging the competitiveness of Paraná's dairy sector. Paraná, being the second-largest milk producer in Brazil, has also proposed additional amendments to the ICMS law and is seeking federal assistance to provide financial relief to its dairy producers, addressing the sector's pressing concerns.

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Original content

This Monday (8), the government of Paraná announced measures to try to protect the state's dairy producers from the import of powdered milk and mozzarella cheese. The first was the publication of Decree 5,396/2024, which changes the collection of Tax on the Circulation of Goods and Provision of Services (ICMS) on the import of the two products. Furthermore, the government proposed to the state Legislative Assembly an amendment to the ICMS law for taxes charged on the import of powdered milk and mozzarella cheese. Until then, the import of any dairy product in Paraná was completely exempt from ICMS. With the changes, both imported powdered milk and mozzarella cheese will now pay an ICMS rate of 7% – the minimum tax charge, as both products are part of the basic food basket and, therefore, cannot be taxed. at the full rate of 19.5%. In Paraná, the largest importers of both products are industry, for whom the rule now applies. With the decree, the import of these two dairy products ...

Source: CanalRural