São Paulo – The Brazilian federal government suspended the collection of PIS and COFINS tariffs on maize imports until the end of this year (December 31, 2021) to facilitate the product’s entry into the country. The information was published this Thursday (23) by the Brazilian Ministry of Agriculture, Livestock, and Food Supply (MAPA).
According to the Ministry, the goal is to reduce the cost of imports, increase the supply of maize in Brazil, and diminish pressure on prices. The commodity’s price, which has soared, directly impacts the cost of raising animals, as it is a source of food for cattle, poultry, and swine.
A drop in this year’s Brazilian maize crop reflects the availability and price of the product in the country. The Brazilian National Supply Company (CONAB) estimates Brazil will have a 16.4% drop in the 2020/2021 maize crop over the previous harvest. The country expects to harvest 85.7 million tonnes in the current crop against 102.5 million tonnes during the last period. This, according to specialists, will also affect exports.
The waiver of taxes to import maize is in a provisional measure published this Thursday, which will come into effect in five working days, and was proposed by the Brazilian minister of Agriculture, Tereza Cristina. According to the MAPA, it will allow the purchase of maize from other markets outside Mercosur at competitive rates, improving internal supply and avoiding price surges on animal protein for the consumer. The Ministry’s expectation is for the waiver of the fees to represent a reduction of 9.25% or BRL 9 (about USD 1.7 at the current rate) per bag in the import cost.
Other measures proposed by the Ministry were also implemented to balance maize prices. The Foreign Trade Chamber (CAMEX) withdrew the import tax (8%), the Common External Tariff (TEC), on maize until the end of this year and facilitated the purchase of genetically modified maize from the United States. The government also authorized public auctions to purchase or remove maize stocks by CONAB to ensure regular supplies, benefiting small animal breeders. Source: Brazil suspends tax, facilitates maize imports | MENAFN.COM