Brazil to raise import taxes on petrochemical products

05 September 2012 19:11  [Source: ICIS news]

MEDELLIN, Colombia (ICIS)--Brazil is set to increase import taxes on a number of petrochemical products later this month in an effort to boost the domestic industry, the country’s Chamber of Foreign Trade (Camex) said on Wednesday.

The import tariffs on maleic anhydride (MA) and ethylene glycol (EG) are set to increase from South American trading block Mercosur’s common external tariff (TEC) rate of 12% to 20%, Camex said.

The tariffs on diethylene glycol (DEG), polycarbonate (PC), methyl methacrylate (MMA) and polymethyl methacrylate (PMMA) will increase from 14% to 20%.

The tariffs on epoxy resins and ethylene polymers in primary forms will also increase from 14% to 20%.

The tariff on polybutadiene rubber (BR) will rise from 12% to 25%, Camex said.

Camex said that the increases, which will affect 100 products in total, are an attempt to help protect the country's petrochemical, steel, pharmaceutical and capital goods sectors.

“Foreign companies are attracted to Brazil because our economy is growing,” said Camex spokesman Andre Diniz. “This is hampering local industry.”

“These increases in import tariffs will stimulate domestic production,” he said.

Mercosur, which includes Brazil, Argentina, Uruguay, Paraguay and Venezuela, has 15 days to review the measures, Camex said.

The increases are expected to come into force at the end of September and will run for an initial period of 12 months, Camex said.

By: Simon West

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