Economy

New tax cut on glyphosate and other industrial inputs

Aug, 04, 2022 Posted by Sylvia Schandert

Week 202231

Five items used as industrial inputs will pay less import tax in Brazil for one year. The measure was approved on Wednesday (3) at an extraordinary meeting of Camex, Brazil’s Chamber of Foreign Trade. The measure includes glyphosate and four types of plastic resin used throughout the productive chain.

The items that had their rates reduced are the following: glyphosate and its monoisopropylamine salt; copolymers of ethylene and alpha-olefin, of density less than 0.94; unmixed polyvinyl chloride; propylene copolymer; and PET resin with a viscosity index of 78 ml/g or more.

New taxes on glyphosate and other products

The products were included in the List of Exceptions to the Common External Tariff (LETEC) of Mercosur. The rates, which ranged from 9.6% to 11.2%, will drop to 3.3% to 4.4% as of Friday (5th). The new tariffs are as follows (in percentages):

Glyphosate and monoisopropylamine salt

  • From 9.6 to 3.8.

Ethylene and alpha-olefin copolymers, with a density of less than 0.94

  • From 11.2 to 3.3.

PVC-S resin (vinyl chloride), not mixed with other substances, obtained by suspension process

  • De 11,2 para 4,4.

PP resin (propylene copolymer)

  • De 11,2 para 4,4.

PET resin: (polyethylene terephthalate): with a viscosity index of 78 ml/g or more

  • De 11,2 para 4,2.

Battling cost problems

The Ministry of Economy noted that the policy intends to solve supply shortages in specific industrial chains with varying degrees of severity, as well as considerable cost rises in inputs from other chains. According to the ministry, the tariff cut also intends to promote efficiency in allocating resources in the economy, potentially increasing competitiveness for various industrial areas.

Letec is an instrument provided for in Mercosur, which allows member countries of the bloc to apply import tariffs different from those provided for in the Common External Tariff (TEC). The alterations are temporary and exceptional, always considering the situational factors for their use. For example, Brazil may apply different TEC rates for up to 100 commodity codes.

Source: Canal Rural

To read the full original article, please go to: https://www.canalrural.com.br/noticias/economia/camex-reduz-aliquotas-sobre-glifosato-e-outros-insumos/]

Camex reduz alíquotas sobre glifosato e outros insumos

Medida também abrange quatro tipos de resina plástica usadas na produção.

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