The New Tax Reform Proposes Zero Rate for Several Foods, Such as Beef, Pork, Goat, Sheep, Poultry, and Fish. Understand the Impact of This Measure on the Economy and Consumption.
The Federal Senate approved, last Thursday, the 12th, the regulation of the tax reform, marking another step in the review of Brazil’s tax system. The proposal sets differentiated rates for basic basket products, including rice, milk, and meats. Now, the text returns for analysis in the Chamber of Deputies.
The measure aims to alleviate the tax impact on the most consumed items by the population, classifying the products into two categories: zero rate and a 60% discount on taxes.
Essential foods will fall under the total exemption category, while other products will have partial discounts.
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Products With Zero Rate
The zero rate covers a wide range of basic foods, directly promoting cost reduction for consumers. The list includes:
- Grains and Cereals: rice, beans, corn grain, and oats.
- Dairy Products: pasteurized liquid milk, powdered milk, butter, margarine, various cheeses (such as mozzarella, minas, prato, curd, ricotta, and cream cheese) and infant formulas.
- Meat and Seafood: beef, pork, goat, sheep, and poultry, as well as fish, excluding varieties such as salmon and cod.
- Other Basic Items: sugar, salt, coffee, cassava flour, wheat flour, pasta, roots, tubers, and French bread.
However, the Senate made adjustments to the initial list, removing items such as corn and soybean oil, keeping only babassu oil as exempt.
Products With 60% Discount
Other items will have a partial reduction in tax burden, with a 60% discount. These products include:
- Processed Dairy Products: fermented milk and dairy drinks.
- Horticultural Products: hard-shelled fruits, fruit pulps, natural juices, and processed horticultural products.
- Cereal Derivatives: cereal flour, corn starch, sliced bread, and crackers.
- Vegetable Oils: soybean, corn, canola, and other non-exempt oils.
- Meats and Seafood: shellfish, excluding high-end items such as lobsters.
Additionally, tomato paste and baked goods appear among the items benefiting from the partial reduction.

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