The Brazilian government eliminated benefits for dairy imports and could harm Uruguay

Published 2024년 4월 15일

Tridge summary

The government of Paraná, Brazil, has taken steps to support its national dairy industry by revoking the ICMS tax exemption on imported dairy products, including milk powder and mozzarella cheese. Previously benefiting from a tax incentive, these imports will now face a 7% ICMS rate, aiming to level the playing field for domestic producers who have been at a disadvantage due to high import levels. This policy shift, particularly impacting imports from Mercosur countries like Uruguay, the primary source of Brazil's milk powder, seeks to protect local dairy farmers and producers by removing the 4% ICMS credit previously available to these imported goods.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The government of Brazil, specifically that of the department of Paraná, decided to eliminate the exemption of a tax on imported dairy products due to a demand from that country's dairy industry, which is at a disadvantage. The decision of the Brazilian department directly affects imported milk powder and mozzarella cheese through the revocation of the exemption from the Tax on the Circulation of Goods and Services (ICMS). The decision was announced by the Paraná State News Agency. The measures respond to the high level of imports of these products that directly affects the national industry of that country. In this way, imported milk powder and mozzarella will now be taxed at 7% of the ICMS, the lowest rate allowed because they are classified as basic food products, which are prohibited from being taxed at the full 19 rate. ,5%. On the other hand, the benefit of the alleged 4% ICMS credit was removed from them, a type of tax incentive, with the aim of preventing the amount from ...

Source: Agromeat