Reduction of tax rates, priority on the customs clearance of imported goods and the inclusion of the production and circulation of products for personal care, health and food as prioritary are some of the measures taken

One measure is contained in the Decree of the President of the Republic No. 10,285 as of March 20, 2020, which reduced to zero the rates of the Tax on Industrialized Products (Imposto sobre Produtos Industrializados – IPI – type of a Federal Value Added Tax) on products such as 70% ethyl alcohol, disinfectants, antiseptic gel, protective clothing, safety glasses, masks, electrodiagnostic devices to control hemoglobin saturation by oxygen, ozone therapy devices, among others. This measure is already in force and shall remain effective until October 1st of this year.

 

With a similar goal, the Resolution of Brazilian Foreign Trade Chamber No. 17, as of 17 March 2020, changed the rate of the Import Tax on goods  to zero percent, considered as important for the fight against covid-19, listed on the Mercosur Common Nomenclature codes and further determining that the treatment given by the entities of the Federal Public Administration that exercise activities of licensing, control or inspection of imports of the goods included in the Resolution must adopt priority treatment for the release of these goods.

 

Still, there is also Decree of the President of the Republic No. 10,282 of March 20, 2020, defined the essential public activities and services, which should have their operation safeguarded so as not to jeopardize the survival, health or safety of the population, such as the production and circulation of products for personal care, health, food and beverages. Also included as essential activities and/or services are the related and supporting activities as well as the provision of necessary supplies for the production chain related to the exercise and functioning of public services and essential activities.