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LatinNews Daily - 08 July 2024

In brief: Brazilian meatpacker lobby calls for tax exemptions

*The Brazilian association of meatpackers (Abrafrigo) has been cited in the press as warning that the price of meat products could increase if they are not included in the list of tax-exempt basic food items. Debates about the basic food basket have intensified ahead of a key battle in congress over various pieces of legislation to add regulations to the tax reform which was fully approved last December. The government led by President Luiz Inácio Lula da Silva submitted draft legislation in late April, which proposed a tax reduction on meat products but not a full exemption. In a radio interview on 2 July, Lula argued that meats that “the people consume”, such as chicken, or certain cuts of meat should be tax-free. The congressional working group analysing the tax reform regulations finalised the draft of the legislation on 4 July, which the lower house is expected to vote upon in a plenary vote later this week. However, the final text did not include any meat items in the basic food basket. Abrafrigo has insisted that meat items are “essential foods” and highlighted that, under the previous consumption tax system, meat products enjoyed exemptions from local taxes in many states, such as the ICMS tax levied by state governments.

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