BRASILIA, May 9 (Reuters) - Brazil's government is studying
removing import tariffs on 11 food and construction products, including steel,
to help cool down consumer prices, said a source familiar with the matter.
According
to the source, who spoke on condition of anonymity as the measures are under
study, the government is considering including the products in the
differentiated import tariff regime for Mercosur members, which allows rates to
be zeroed without the need to negotiate with other members from the South
American trade bloc.
A
10% reduction in Mercosur's common external tariff is also on the table, said
the source, following a first cut announced by Brazil in November as an
exceptional move within the group's rules.
Brazil
has been facing persistent double-digit inflation, with the commodity shock
exacerbated by the Ukraine war weighing on prospects. Adding to pressures,
state-run oil company Petrobras said on Monday it would raise diesel prices by
8.9%.
President
Jair Bolsonaro, who seeks reelection in October, has already reduced some taxes
in an attempt to ease inflation, lowering taxation on industrialized products
(IPI) and eliminating tariffs on ethanol and six basic food products.
The
source also pointed out that the government plans a tax reform with a 10% tax
on dividends and a reduction in the tax burden on corporate income to 30% from
34%.
The
reform is lighter than a proposal already approved in the Lower House last year
but not voted on in the Senate. It established a 15% tax on currently exempt
company dividends, and a reduction in corporate income burden to 26%.
Political
negotiations are underway for the bill to be reconsidered in the Senate, but
modified to be a "mini-reform," the source said, discarding the
inclusion of changes to reduce individuals' income tax. (Reporting by Bernardo
Caram; Writing by Marcela Ayres Editing by Marguerita Choy)