Tax exemption for imported food worries sectors in Brazil

The Brazilian government has exempted import taxes on soy oil, cheese, and pasta until the end of the year to mitigate inflation caused by the pandemic and the Russia-Ukraine conflict. However, representatives from the affected industries express concerns and surprise, arguing that the move could negatively impact domestic producers and the entire supply chain. They also highlight that the exemption could lead to a decrease in product prices for consumers, despite the current shortage of soybean oil in Brazil and the need for self-sufficiency. Additionally, the government is facing criticism for not providing transparency on imported cheese and potential subsidies, as Brazil imports a small percentage of its cheese supply. The decision also fails to consider the significant increase in wheat prices due to the ongoing conflict, affecting the pasta industry. The Minister of Agriculture, Livestock and Supply has passed the responsibility for the decision to the Minister of Economy, showing uncertainty about the measure.