RIO DE JANEIRO, BRAZIL – Brazil is lowering import tariffs on almost 1,500 capital goods and white goods by 10%, the economy ministry said on Wednesday, March 17th, a measure aimed at reducing import costs and consumer prices and which will take effect later this month.
The reduction will “lower machinery and equipment costs, increasing the competitiveness of industry, services and agribusiness, resulting in lower prices for the Brazilian consumer,” the ministry said in a statement.
Import tariffs on these goods currently vary between zero and 16%, the ministry said. “All 2% rates will be reduced to zero, reducing bureaucracy and making life easier for importers and consumers,” the ministry added.
Annual inflation in Brazil is running at its highest in four years, at 5.20%, and is widely expected to rise in the coming months to over 6%.
The Central Bank, which raised interest rates later on Wednesday for the first time in six years, had an official year-end inflation target of 3.75%.