Brazil: Government of Paraná proposes tax changes to contain imports of powdered milk

Published Apr 9, 2024

Tridge summary

The Government of Paraná, Brazil, has taken significant steps to protect its local milk producers from the competition of imported powdered milk and mozzarella cheese by altering ICMS tax rules, including the issuance of Decree 5,396/2024 and proposing amendments to ICMS legislation, imposing a 7% tax on these previously exempt imports. This move aims to counteract the adverse effects of rising imports from Mercosur countries on local prices and profitability. Additionally, Paraná, being the second-largest dairy producer in Brazil, is advocating for federal support in the form of loan payment postponements or debt refinancing for family farmers in the 2024/25 Harvest Plan, alongside organizing technical events to further engage producers. These efforts underscore the state's commitment to bolstering its dairy sector against external pressures and ensuring its sustainability.

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

Original content

To continue reading the article, log in with your account or register on MilkPoint. Get access to exclusive content! The Government of Paraná took two measures this Monday (04/08) to protect the state's milk producers in the face of competition from the import of powdered milk, used in the industrialization process, and mozzarella cheese. Both measures involve changes in the rules of the Tax on the Circulation of Goods and Services (ICMS), a demand from the productive sector to protect local production in the face of the significant increase in the import of powdered milk since 2022. The first decision was the publication of Decree 5,396/2024, which changes the tax treatment when importing the two products. Furthermore, the Government sent a bill to the Assembly to amend the ICMS legislation (State Law 13,212/2001) on the import of powdered milk and mozzarella cheese. Until then, the import of inputs used in production ...

Source: Milkpoint