BRASILIA, Feb 27 (Reuters) – Brazil’s government partially rolled back a controversial increase in import tariffs approved earlier this year, the Ministry of Development, Industry, Trade and Services said on Friday.<\/p>\n
The move, previously reported by Reuters, citing sources, restores a zero tariff on items that had been taxed after losing exemptions granted under the government’s policy to attract data centers to the country.<\/p>\n
Sign up here.<\/a><\/p>\n In February, President Luiz Inacio Lula da Silva’s administration raised import duties on more than 1,200 capital and technology goods.<\/p>\n The Independent Fiscal Institution (IFI), a fiscal entity linked to the Senate, had estimated the measure would generate between 14 billion reais and 20 billion reais ($2.7-3.9 billion) in additional revenue this year.<\/p>\n Now, 105 items have returned to a zero-tariff regime, including refrigeration compressors and other components critical for internal hardware cooling, as well as substations used to connect data centers to primary power infrastructure.<\/p>\n The government also reinstated exemptions for items unrelated to the data center sector after receiving requests from various industries, including textile machinery, medical equipment and truck-mounted cranes.<\/p>\n The tariff hike had been crafted by the Finance Ministry, which argued that the realignment was needed because the affected goods account for a recurring sectoral trade deficit and a high penetration of imports – a trend the ministry’s economic policy secretariat described as not “merely cyclical, but structural.”<\/p>\n Speaking on condition of anonymity, a government source said the motivation behind the tax increase was fundamentally fiscal, as the additional revenue from raising import taxes – which does not require congressional approval and takes immediate effect – will be important for meeting the government’s fiscal targets not only this year but also next year.<\/p>\n That discussion is taking place in the context of the 2027 budget guidelines bill, which is due to be submitted to Congress in April, added the source.<\/p>\n ($1 = 5.1417 reais)<\/p>\n Reporting by Marcela Ayres and Bernardo Caram in Brasilia; Editing by Chris Reese and Chizu Nomiyama <\/p>\n Our Standards: The Thomson Reuters Trust Principles., opens new tab<\/a><\/p>\n Purchase Licensing Rights<\/a><\/a><\/p>\n Reports on the macro beat, covering economic policy in Brasilia. Bernardo studied journalism at the Pontifical Catholic University of Minas Gerais before completing a specialization in Economics at Funda\u00e7\u00e3o Getulio Vargas (FGV) and an MBA in Economic-Financial Information and Capital Markets at Funda\u00e7\u00e3o Instituto de Administra\u00e7\u00e3o (FIA) in Sao Paulo. He previously worked in Brasilia for Folha de S.Paulo, Agencia Estado and the Globo\u2019s G1 website.<\/p>\n","protected":false},"excerpt":{"rendered":"BRASILIA, Feb 27 (Reuters) – Brazil’s government partially rolled back a controversial increase in import tariffs approved earlier…\n","protected":false},"author":2,"featured_media":496130,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[36],"tags":[182548,130458,28,184371,182540,182539,184400,41240,101,184328,182531,191612,184373,100804,137922,183077,184433,3733,184951,184402],"class_list":{"0":"post-496129","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-amers","9":"tag-br","10":"tag-business","11":"tag-dbt","12":"tag-destocabsm","13":"tag-destousbsm","14":"tag-eci","15":"tag-eco","16":"tag-economy","17":"tag-emrg","18":"tag-gen","19":"tag-gfin","20":"tag-gvd","21":"tag-latam","22":"tag-mce","23":"tag-pol","24":"tag-samer","25":"tag-tax","26":"tag-topicworld-brazil","27":"tag-tracc"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/496129","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=496129"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/496129\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/496130"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=496129"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=496129"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=496129"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}