Monday, September 24, 2012

Brazil to increase Import duty on pharmaceutical products to help national production

The Federal government in Brazil has implemented an increase in import tax on 100 types of products, including chemicals and pharmaceutical. The step has been taken to promote National production. The current import tax which ranges between
12% and 18% will go upto to 25%.
Brazil pharma industry in increasingly supporting domestic manufacturers. Mr Fernanto Pimentel, minister of development, industry and foreign trade disagrees with this and says: "what we are doing is absolutely in line with the world trade organization rules, we are not violating the OMC tax ceiling of 35%." 
The new tax raise is a temporary measure that will last 12 months and it may be extended for an equal period of time. The approved list will enter into force on September 25, 2012. But the detailed list of items has not yet been published.