Check out the list of basic food items with zero tax; the measure is valid starting this Friday.

247 - Starting this Friday (14), the exemption from import taxes for a list of basic foods, such as meat, coffee, sugar, corn and pasta, will come into effect. The decision was unanimously approved by the Council of Ministers of the Foreign Trade Chamber (Camex), an agency linked to the Ministry of Development, Industry and Trade, this Thursday (13). The measure aims to reduce the prices of these products in the domestic market, pressured by high inflation.

Food inflation is one of the main concerns of the federal government, as it directly affects the cost of living for the population and influences the perception of President Luiz Inácio Lula da Silva's administration. According to experts, the increase in food prices is one of the factors contributing to the popularity crisis faced by the government, as highlighted by... G1.

Vice President Geraldo Alckmin, who announced the measure last week, stressed that the exemption should not harm national producers. "We understand that it will not [harm Brazilian producers]. You have periods of higher prices, lower prices. We are in a period where reducing the tax helps to reduce prices. You are complementing it," said Alckmin. "It will not harm the producer, but it will benefit consumers," he added.

See below for the products that will have their import tariff reduced to zero:

• Meat: current tariff of 10,8% drops to 0%
• Coffee: current tax of 9% drops to 0%
• Sugar: current tariff of 14% drops to 0%
• Corn: current rate of 7,2% drops to 0%
• Olive oil: current tax of 9% drops to 0%
• Sunflower oil: current tariff of up to 9% drops to 0%
• Sardine: current tariff of 32% drops to 0%
• Biscuits: current tax of 16,2% drops to 0%
• Pasta (macaroni): current tariff of 14,4% drops to 0%

Impact on producers and consumers

Guilherme Mello, Secretary of Economic Policy at the Ministry of Finance, explained that the measure aims to increase competitiveness and reduce domestic prices. "Several of these products have a low level of imports, precisely because they have high import taxes. The objective of these measures is to increase competition, competitiveness, and therefore, reduce domestic prices," he stated.

Mello stressed, however, that there are still no conclusive estimates on the financial impact of the measure, both for the government and for consumers. "The impact will be estimated from the technical reports that will be generated, but these are administrative measures that, from the point of view of revenue collection, may not have a significant impact. From the consumer's point of view, we will certainly see a significant impact," he said.

Despite expectations of lower prices, experts warn of potential negative effects on domestic producers, who will have to compete with cheaper imported products. The measure, however, is seen as an attempt by the government to alleviate inflationary pressure and improve public perception of economic management.

The effectiveness of the tax exemption, however, will still be tested in the coming months as the new food prices hit supermarket shelves.