Brazil’s Secretary of Finance advises taxpayers on the change of the Goods and Services Tax (ICMS) on imports of agricultural inputs. From January 2023, these operations will be subject to a 2% tax charge as stipulated in the ICMS agreement 26/2021. Currently, operations involving the importation of agricultural inputs are privileged with a tax reduction of the calculation base, so that the tax charge corresponds to 1%. According to the ICMS 26/2021 agreement, signed within the National Tax Policy Council (Confaz), the benefit will continue to be applied, but the percentage will have to be gradually adjusted each year until it reaches the value of 4% by 2024.
Sources: GlobalFert/CENOFISCO (*Translated by Ia Niani)