Brazil's Finance Minister Fernando Haddad recently defended the government's decision to increase import tax rates, emphasizing that this change is primarily regulatory in nature and will not have a considerable impact on prices. Haddad stated that the increase is expected to generate about R$ 14 billion in additional revenue for the government this year, positioning the policy as a measure to protect local industries from unfair competition posed by foreign companies. He highlighted that over 90% of the goods affected by the tax hike are produced domestically, which he argues mitigates the perceived risk of price increases.

In his statements, Haddad refuted claims that the tax increase would lead to higher consumer prices, labeling such assertions as misinformation. He clarified that the intent behind the new tariff policy is not to penalize local manufacturers but rather to ensure they remain competitive against imported products that could undercut them through aggressive pricing strategies. This assertion is particularly significant for Brazilian industries that have struggled to compete with imported goods, particularly amid challenges like currency fluctuations and supply chain disruptions.

The minister’s remarks were made during an interview outside the Ministry of Finance, where he addressed concerns from the productive sector regarding the potential consequences of the tax hikes. By highlighting the protective nature of the proposed tariffs, Haddad aims to garner support for the policy within Brazil, reinforcing the government's commitment to supporting local economic growth and stability amid ongoing global trade challenges.