In addition to that, Ministry of Industry, Foreign Trade and Servicess, the elected government of the President, Jair Bolsonaro, may conflict with the industry at another point: commercial opening. The Transition Group is currently working on three proposals in this area with a common issue of voluntary and unilateral reduction of non-reciprocal import tariffs for different products.
By View Forum Posts, it is already certain that customs will gradually decrease and tax reform, which is expected to improve the business environment. However, the unilateral reduction of tariffs is a strong opposition to industry.
The way in which a cut would occur varies according to the study. The most comprehensive proposal is coordinated by Sandro Rios, CFO of the Cindes Integration and Development Center (Cindes), based on a working group set up in 2015, The current chairman of the Central Bank, Ilan Goldfajn.
In this case, the idea is to reduce the tariffs for all imported goods by four years. Products currently priced from 20 to 35 percent, such as household appliances, cars and clothing, go to 15 percent. Those with a customs duty of 15 to 20 percent, like some capital goods, to 10 percent. For example, customs duties of 5 to 15%, which affect, for example, steel products, fall to 5% and for raw materials less than 5%. "Of course, the government is not immune to lobbying, but ideally it should target all products," Sandra said. However, Mercosur relies on a one-sided cut of one member's tariffs.
According to a paper prepared by professors from the Getúlio Vargas Foundation (FGV), cutting tariffs on emissions trading and information technology should start in line with Mercosur rules. It also provides for lowering tariffs for steel products.
Tariffs would decrease gradually until they reach 4% in 2021, which is equivalent to the world average. Today, investment assets range from 8% to 35%, IT from 6% to 25%, and from 8% to 14% in the steel industry. The objective in this case would be to improve competitiveness.
The idea is in line with the third proposal by the Temer Board's Strategic Affairs Secretariat (SAE) that the import tax on investment goods, information technology and telecommunications must be reduced to 4% by 2021 (excluding steel). SAE also encourages Brazil to propose the reduction of the Mercosur's Common External Tariff (TEC) and the total abolition of trade between Mercosur and the Pacific and the Pacific. The information is from the newspaper O Estado de S. Paulo.