During the signing ceremony of a service order in São José da Tapera, Alagoas, this Thursday (09), President Luiz Inácio Lula da Silva expressed frustration with the high prices of rice and announced the sending of a provisional measure to facilitate the import of grain from neighboring countries such as Bolivia, Paraguay, Uruguay and Argentina.
The president criticized the tax disparity between rich and poor in Brazil and revealed plans to exempt products from the basic food basket from taxes, emphasizing the need to make basic foods more accessible to the low-income population. The provisional measure aims to mitigate the effects of the recent floods in Rio Grande do Sul, which significantly impacted national rice production.
What do you need to know
- Rice Import: Lula proposes importing rice to combat rising prices.
- Tax Review: The president criticizes the tax burden on the poor and the tax exemption on dividends.
- Food Tax Exemption: Proposal to exempt products from the basic basket from taxes.
Economic and Social Context
The announcement comes in response to recent increases in the price of rice, noticed by the president himself on a visit to a supermarket, where a 5kg package was being sold for R$33. “It’s not normal. Poor people cannot pay R$33 for a 5kg package of rice”, commented Lula, highlighting the urgency of the situation for lower-income families in the country.
Proposed Measures and Repercussions
In addition to rice imports, President Lula reinforced his position on the need for a tax reform that favors fiscal equity, specifically mentioning Petrobras’ profits and the tax exemption on its dividends as an example of inequality in the Brazilian tax system. “We want the rich to pay,” said Lula, indicating future changes in fiscal policy, especially in relation to essential foods.
Impact of Floods on Rice Production
The floods in Rio Grande do Sul, which affected around 70% of the country’s rice production, catalyzed the government’s decision to import one million tons of the grain. This action aims to stabilize the market and prevent future price escalations that could worsen the economic situation of vulnerable populations.
