Zero Import Taxes: What Does It Mean for Consumers?

News eriksouza.es@gmail.com 11/03/2025

Zero Import Taxes: What Does It Mean for Consumers?

Last week, the government announced that it will remove import taxes on nine essential products. These products include items like meat, coffee, and wheat. The goal is to reduce prices for consumers and help lower food inflation. However, the real impact will be different for each product.

For example, take beef. Brazil produces a large amount of beef locally. Last year, Brazil imported about 40 million kilograms of beef, while it exported almost 2.9 million tons. Because of this strong local production, lowering import taxes on beef is expected to have only a small impact on its price.

Now, look at coffee. Brazil is the world’s largest producer of coffee. Most of the coffee consumed in Brazil comes from local farms. Since there is little need to import coffee, removing import taxes on coffee may not change prices much for local consumers.

On the other hand, products like bread might see a bigger impact. Wheat is one of the main ingredients in bread, and Brazil imports a large part of its wheat from countries like Argentina. By zeroing import taxes, the price of wheat may drop, and in turn, bread might become cheaper for consumers. In addition, other imported products, often seen as “premium,” such as Argentine beef, Asian coffee, or French bread, may also become less expensive.

This change in import taxes is part of a larger effort to lower the cost of food. Recently, some PT deputies even asked the governor of São Paulo, Tarcísio de Freitas, to exempt basic food items from the state tax, ICMS. The governor said that items like rice, beans, and fruits are already exempt from ICMS in São Paulo. This shows that the government is working hard to control food prices from different angles.

The impact of removing import taxes will depend on how much each product is imported versus produced locally. For products with a high share of imports, consumers may see lower prices quickly. For products mainly produced in Brazil, the effect might be small.

In conclusion, the removal of import taxes on these essential products is a step towards reducing food prices. While some products, like imported wheat for bread, might become noticeably cheaper, others may see only minor changes. This policy is another part of the government’s plan to help consumers and control inflation in the food market. What do you think about this new policy? Let us know your thoughts in the comments.