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Brazil agchems face higher taxes

The cost of pesticides in Brazil is set to rise by $350 million, according to the national press, including the business daily, Valor Economico. A quarrel over taxes among Brazilian states is behind the warning. The national price policy council, the Confaz, has rejected an extension to an agreement covering the interstate trade tax, theICMS. The tax is levied on transactions relating to the movement of goods across states. The state of Mato Grosso (Confaz member) voted against an extension to the agreement, which lowered the duty’s level. The Confaz requires a unanimous vote to extend the deal. The projected rise in prices among all agricultural inputs runs “into billions of reals”. The deal runs out at the end of July.



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