BRASILIA, Reuters – Brazil’s government has announced a 10% increase in import tax rates on a significant portion of imported goods. This is to help reduce inflationary pressures.

After a meeting with the Brazilian Foreign Trade Chamber, the tax reduction approved by the economy ministry, covering approximately 87% tariff goods of the country, was late Monday.

Reuters had confirmed that the source previously provided this information.

In a note to journalists, Lucas Ferraz, Secretary of Foreign Trade said that “Today’s action, combined with the 10% reduction made last year brings Brazil’s tariff level closer to international average and, particularly, to countries of the Organization for Economic Cooperation and Development (“OECD)”.

The government unilaterally decreased the common external tariff rates (TEC) by 10% in November 2013 without approval from all Mercosur members. This was to address rising prices.

In April, the government declared its intent to support a new 10% decrease in import tariffs.

Economy ministry of the country supports gradual economic opening and has recently introduced cuts in industrial tax (IPI), to improve the industry’s competitiveness and allow the reduction of import tax.

The initial 25% reduction in IPI was raised to 35%. This preserves products from Manaus Free Trade Zone. However, this measure was resolved in court. It is now partially suspended.