Brazil alters tax credit for coffee exporters

By: | at 08:00 PM | International Trade  

Brazil will alter rules for a system of taxes on which some coffee industry players have been able to claim credits when exporting, the official government gazette said.

Two local coffee traders who talked to Reuters had interpreted this to mean either a reduction or a complete abolition of the credits for the coffee sector.

Exporters have been clamouring for an end to PIS and Cofins tax payments and reimbursements, as many were unable to claim sums paid back while local roasters who obtained refunds more easily, begun exporting and undercutting regular exporters.

A reduction or end to the PIS and Cofins system could potentially result in a slight rise in the cost of coffee exports from Brazil if the incentive for these roasters is removed and takes them out of this market. (Reuters)


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