Members of Brazil's government acknowledge discontent regarding the increased import tax on over 1,250 electronic items and machinery, suggesting a potential reevaluation of the policy.
Members of President Luiz Inácio Lula da Silva's government have expressed concerns about the backlash stemming from a recent resolution by the Camex (Chamber of Foreign Commerce) that raised import taxes on 1,252 items, including electronics and capital goods like machinery. With the upcoming election year, there is increasing pressure to reassess the tax increases. These government officials have indicated that some tax rates may be reconsidered, evaluating each case individually.
The government is also looking at provisions for an automatic tariff exemption for 120 days for importers adversely affected by this resolution, particularly those who previously enjoyed zero tariffs prior to the announcement. This move aims to alleviate some adverse effects on businesses that rely on imported goods, especially in industries facing supply chain pressures.
In support of the policy change, the Brazilian Electrical and Electronics Industry Association (Abinee) has publicly backed the measure, asserting that it will strengthen the national industry. The Camex is scheduled to convene again on Friday (27), where further discussions on these issues are expected to unfold, highlighting the government's delicate balancing act between fostering local industry and responding to importers' concerns.
