Brazil’s Tax Reform and the National Basic Food Basket: A Push for Health and Sustainability

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The ongoing discussion about Brazil’s tax reform has brought significant attention to the national basic food basket. There is a strong push from various sectors, including academic institutions, civil society, and parts of the government, for a basic food basket that promotes public health and sustainable development. This effort includes the exclusion of ultra-processed foods and the advocacy for fiscal measures that favor healthy, adequate foods.

One of the critical areas of concern is the status of agrochemicals. Despite being identified by numerous studies as harmful to both health and the environment, agrochemicals have not been included in the list of products subject to selective taxation. This omission is a major point of contention among those advocating for a more health-conscious and sustainable tax reform.

Key Points:

  • Public Health Advocacy: Strong push from various sectors for a basic food basket that promotes public health by excluding ultra-processed foods.
  • Sustainability Focus: Advocacy for fiscal measures that support sustainable development and favor healthy, adequate foods.
  • Agrochemical Concerns: Despite their harmful effects, agrochemicals are not included in the list of products subject to selective taxation, raising significant concern.
  • Ongoing Campaign: IDEC has been actively sharing this information through newsletters as part of its campaign to press the debate on tax reform.

Assessment: The proposed tax reform could significantly alter the food industry landscape, particularly affecting companies involved in the production and distribution of ultra-processed foods. The exclusion of agrochemicals from selective taxation may also impact the agricultural sector.

Next Steps: Businesses should closely monitor developments in the tax reform debate, prepare for potential shifts in taxation policies, and consider strategies to navigate the discussion and a possible tax approval. Engagement in advocacy and dialogue with policymakers is also recommended.


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