Originally published in the June 2 edition of World Tax Daily (Copyrights Tax Analysts – www.taxanalysts.com)
In an attempt to contain rising prices for wheat and its byproducts, the Brazilian government has reduced to zero some of the taxes levied on imports and local purchases of certain wheat products.
One of the reductions was introduced by Provisional Measure 433, which was published in the official gazette and entered into force on May 28. It reduced to zero the rates for P.I.S. (the Program for Social Integration contribution) and COFINS (the Contribution for the Financing of Social Security) on imports and local sales of wheat flour, wheat, and bread mixtures.
That measure also reduced to zero the additional tax on international freight applicable to imports of those same products. The zero rates apply through December 31.
In addition, Presidential Decree 6,465/2008, published on May 28, reduced to zero the federal excise tax on imports and local purchases of mixtures for bread and bread baking.
David Roberto R. Soares da Silva