Parana’s Lowest Tax on Basic Food Baskets
- CURITIBA, Brazil (AP) — paraná stands out as the Brazilian state with the lowest tax burden on essential food products, according to a recent survey by the Brazilian...
- As inflation remains a notable concern in Brazil, Paraná's zero ICMS rate on staples like eggs, coffee, and meat offers some relief to consumers.In contrast, Paraíba, Roraima, and...
- The Abras survey indicates that 22 of the 29 best-selling products in Brazil are tax-exempt in Paraná.
Paraná Leads Brazil in Low Taxes on Basic Food Items
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CURITIBA, Brazil (AP) — paraná stands out as the Brazilian state with the lowest tax burden on essential food products, according to a recent survey by the Brazilian Supermarket Association (Abras). The survey, released Wednesday, highlights Paraná’s advantageous position regarding the Commodity and Service Circulation Tax (ICMS).
As inflation remains a notable concern in Brazil, Paraná’s zero ICMS rate on staples like eggs, coffee, and meat offers some relief to consumers.In contrast, Paraíba, Roraima, and Sergipe impose the highest ICMS rates on basic food basket items.
The Abras survey indicates that 22 of the 29 best-selling products in Brazil are tax-exempt in Paraná. This policy directly benefits consumers by reducing the pressure on retail prices.
Tax Exemptions on Key Breakfast Items
Coffee, a staple in Brazilian households, is exempt from ICMS in Paraná and Amapá only. Other states apply tax rates ranging from 7% to 20.5%, according to Abras.
Paraná residents also benefit from zero ICMS on French bread and wheat flour, key ingredients for breakfast. Only Espírito Santo shares the zero ICMS rate on French bread, while Amazonas also has a zero rate on wheat flour.
other breakfast staples enjoying zero ICMS in Paraná include eggs, fruits, butter, and margarine. Additionally, Paraná is the sole Brazilian state that does not tax mate tea, a popular beverage.
Meat Prices Lower in Paraná
The Abras survey also emphasized that Paraná remains the only state in Brazil with ICMS exemptions on all types of meat.
“Animal protein is a fundamental part of the Brazilian diet, so its price has a great impact on the family budget,” said finance Minister Norberto Ortigara. “Whether it is beef, chicken, fish or pork, the mixed ingredients in Parana are guaranteed.”
Nationwide, Amapá and Roraima also have no ICMS on beef, pork, lamb, goats, and poultry. Fish is tax-exempt in Amazonas, Pará, Bahia, and Tocantins.
“Paraná has been doing its part for a long time. Since 2019, the ICMS has taxed most basic foods at zero, and we have maintained this low tax burden to respect the citizens of Paraná, who are responsible for producing most of the food consumed in Brazil,” Ortigara explained.“This is not a policy on a whim but a decision made for the benefit of the people.” He added that approximately 5 million basic food basket products in the state have been tax-exempt over the past six years.
ICMS Impact on State Revenue
ICMS is a primary source of state revenue. In 2024, it accounted for 44.8% of Brazil’s recurring revenue, totaling 3.11 billion reais. These funds support public projects and services, with a quarter allocated to Paraná’s 399 municipalities for health, education, public safety, and transportation.
Food Inflation Trends
Brazil’s national broad consumer price index 15 (IPCA-15), released Thursday, indicated a 0.64% rise in national prices, primarily driven by a 1.25% increase in food prices. The most significant increases were in eggs (19.44%), tomatoes (12.57%), and coffee powder (8.53%), all of which have zero ICMS in Paraná.
Source: AEN
Paraná: Your Guide too Lower Food Costs in Brazil
Q: What makes Paraná stand out regarding food prices in Brazil?
A: Paraná, a state in Brazil, leads the way in offering consumers relief from high food costs. According to a recent survey by the Brazilian Supermarket Association (Abras), Paraná boasts the lowest tax burden on essential food products. This is primarily due to the state’s advantageous position regarding the Commodity and Service Circulation tax (ICMS). The zero ICMS rate on staples like eggs, coffee, and meat directly benefits consumers.
Q: What is the ICMS, and how does it impact food prices in Paraná?
A: ICMS, the Commodity and Service Circulation Tax, is a primary source of state revenue in Brazil. In 2024, it accounted for 44.8% of Brazil’s recurring revenue, totaling 3.11 billion reais. In Paraná, the state government has implemented a zero ICMS rate on many essential food items, reducing the pressure on retail prices and benefiting consumers.
Q: Which food items are tax-exempt in Paraná?
A: Many essential food items are exempt from ICMS in Paraná. These include:
Breakfast Staples: Eggs, coffee (in Paraná and amapá only), French bread, wheat flour, fruits, butter, and margarine.
Meat: All types of meat are exempt from ICMS in Paraná.
* Other: Mate tea (a popular beverage) is also tax-exempt.
Q: How does Paraná’s approach to food taxation compare to other brazilian states?
A: In contrast to Paraná, other states impose higher ICMS rates on basic food basket items. For example, Paraíba, Roraima, and Sergipe have the highest ICMS rates. While fish is tax-exempt in Amazonas,Pará,Bahia,and Tocantins,Paraná’s exemptions are more comprehensive.
Q: What benefits do these tax exemptions offer consumers in Paraná?
A: The zero ICMS rates on essential food items in Paraná result in lower retail prices, providing direct relief to consumers. Reduced prices on staples like eggs, coffee, and meat ease the financial burden on families. According to the Abras survey, 22 of the 29 best-selling products in Brazil are tax-exempt in paraná.
Q: What impact does this low-tax policy have on the state’s revenue and services?
A: Although the low ICMS contributes to lower state revenue, the collected funds still support significant public projects and services. A quarter of the revenue is allocated to Paraná’s 399 municipalities for health,education,public safety,and transportation.
Q: what is the current trend in food inflation in Brazil?
A: According to Brazil’s broad consumer price index (IPCA-15) released on Thursday, national prices rose by 0.64%.This increase was primarily driven by a 1.25% rise in food prices. Notably, the most significant increases were in eggs (19.44%), tomatoes (12.57%), and coffee powder (8.53%). All these items have a zero ICMS rate in Paraná.
Q: How long has Paraná been implementing these food tax exemptions?
A: Paraná has maintained this low tax burden as 2019. Approximately 5 million basic food basket products in the state have been tax-exempt over the past six years.
Source: AEN