Federal government does not plan to create tax on food exports, says Alckmin

SAO PAULO (Reuters) – The Brazilian government does not plan to create a tax on food exports, Vice President Geraldo Alckmin said in an interview with reporters on Friday.

The speech was made after Alckmin was asked about a discussion related to the possible reduction of import taxes on vegetable oils, something debated as an option to help reduce inflationary impacts on food.

“What there won’t be is heterodoxy, tax increases, the creation of an export tax, that won’t happen,” he stated.

Previously, he said that he “has not made any decision” on reducing import taxes on vegetable oils.

“It is an issue that is being discussed by several ministries,” he admitted.

When asked about a meeting with the Minister of Agriculture, Carlos Fávaro, he stated that issues regarding credit and climate for the harvest were discussed.

Earlier, the newspaper O Globo reported that the Brazilian government is discussing reducing the import tax on ethanol, with the aim of improving its domestic popularity and pacifying relations with the United States.

Furthermore, it would be a way to avoid a possible surcharge on Brazilian ethanol exports and help reduce the price of fuel on the domestic market, according to the newspaper.

(By Roberto Samora)