Taxing agrochemicals: is it the solution?

The debate over the taxation of agrochemicals has returned to the center of national discussions, driven by initiatives advocating for taxes aimed at correcting supposed environmental impacts. The information comes from Luis Eduardo Pacifici Rangel, a member of the Agro Sustainable Scientific Council (CCAS), former Secretary of Agricultural Defense, and former Director of Economic Analysis and Public Policies of the MAPA. The proposal is based on the idea that raising taxes would reduce the use of these inputs, but recent studies show that this logic does not apply to the agricultural sector. Researchers from the University of Brasília point out that the demand for agrochemicals has virtually no price elasticity, which means that usage does not decrease even in the face of cost increases. The direct effect would only be the increase in production costs, putting pressure on food prices without generating environmental benefits. The analyses highlight that these inputs are essential ...