The announcement that the federal government would reduce import taxes on various products to lower inflation took the industry by surprise. Associations that are responsible for the manufacturers of the items scheduled a series of meetings to calculate the impacts of this on the Brazilian market and provide a response to the measure of the economic team.
In a note sent to CNN , Instituto Aço Brasil stated that the participation of steel rebar, which had a reduced tax, in the composition of inflation is only 0.03 percentage point. That is, for every BRL 1 in the price of inflation products, rebars account for just 3 cents.
The decision of the Executive Committee of the Foreign Trade Chamber of the Ministry of Economy was to lower the rate charged for CA50 and CA60 rebars from 10.8% to 4%.
“The measure, in the opinion of Aço Brasil, is inadequate since the market is fully supplied, there is no price speculation and the inflationary impact of rebar is only 0.03 percentage point on the IPCA. There is, therefore, no exceptionality that justifies the measure”, says the note from Aço Brasil.
They also state that the decision “goes against the policy adopted by the main steel producing countries, which, given the gigantic excess of installed capacity in the world, of around 518 million tons, have adopted measures to restrict predatory imports”.
The Brazilian Animal Protein Association (ABPA) appealed to the federal government to help find a solution to the “highs of more than 100% in corn and soybean meal (which represent 70% of production costs), in addition to other inputs such as diesel, plastic and cardboard packaging, among others”.
According to the entity, “these, yes, are the real causes of the high prices of the products and that demand immediate actions on the part of the Government”.
Among the 11 products that had tax reductions are frozen boneless beef, which had the rate of 10.8% zeroed, as well as frozen chicken pieces, which had a 9% tax.
Abimapi, which represents the biscuit manufacturers, Abitrigo, which represents the wheat and flour industry, and Abramilho, are still deciding on their positioning and should release announcements in the coming hours or this Thursday (5/12) .
THE CNN sought the Ministry of Economy to pass on the manifestations of the entities and awaits a return.
Source: CNN Brasil
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