Largest Brazilian state soy producer increases import tax on inputs in 2023

The Brazilian state of Mato Grosso, the largest Brazilian producer of soy, announced a 100% tax increase on imports of agricultural inputs in 2023.

Currently at 1%, the tax rate for purchasing agrochemicals and fertilizers will double to 2% this year, according to an announcement by the State Department of Finance of Mato Grosso.

The importation of agricultural inputs were favorable until last year, with tax redutions being based on calculations of the Tax on Circulation of Goods and Services (ICMS).

According to the new agreement implemented by the Brazilian National Tax Policy Council (Confaz), the tax should increase annually in stages until it reaches 4% in 2024.

The change covers imports the following products:

     • Nitric, sulfuric, and phosphoric acids
     • Raw natural phosphate
     • Sulfur
     • Ammonia
     • Urea
     • Ammonium sulfate
     • Ammonium nitrate
     • Nitrocalcium
     • Monoammonium phosphate (MAP)
     • Diammonium phosphate (DAP)
     • Potassium chloride
     • Simple fertilizers
     • Compound fertilizers
     • Fertilizers
     • DL methionine and its analogues

″We are advising taxpayers to make the necessary adjustments so nationalized goods are not confiscated during inspections, which can be carried out at tax posts, mobile inspection units, or even after subsequent control and audits. Monitoring,″ said Henrique Carnaúba (Superintendent of Control and Monitoring at Sefaz).

(Editing by Leonardo Gottems, reporter for AgroPages)