Brazil to raise tax on 100 products
The Brazilian trade ministry has announced that the import tax on 100 products will be raised in an effort to help local industries; in some instances by as much as 25%. Brazil has denied that the move is protectionist and has announced that it will seek the approval of its trading partners within Mercosur.
The goods affected are primarily within the petrochemical, pharmaceutical, steel and capital goods sectors. Trade Minister Fernando Pimentel announced that the list would be expanded by a further 100 by October. This follows similar moves last year, when the tax on foreign vehicles rose and there are already concerns over what is perceived to be Brazil’s protectionist stance. President Rousseff, an economist, is aiming to reduce red tape and boost Brazil’s slowing economy.