Weeks Before Collapse, Bolsonaro Government Raised Gas Cylinder Import Tax
RIO DE JANEIRO, BRAZIL – The government raised the import tax on medical gas cylinders, which had been exempt since March 2020 to simplify measures to fight Covid-19, three weeks before the Manaus hospital network collapsed due to lack of oxygen.
Iron cylinders sourced abroad were again taxed at 14%, and aluminum cylinders at 16%. In practice, the end of the exemption rendered the purchase of these products more costly.
The Foreign Trade Chamber (CAMEX) Executive Management Committee’s (GECEX) resolution dated December 24th, 2020 revoked the exemption of 185 items, which were until then on the list of products considered a priority in the fight against Covid-19.
CAMEX’s executive secretariat is linked to the Ministry of Economy. The portfolio reported that decisions on tariff reduction to help fight Covid-19 are taken “based on the Ministry of Health’s recommendations, which is the final authority on the matter within the federal government”.
The Ministry of Health has not commented on the subject.
Deaths by asphyxia
With the new explosion of Covid-19 cases in Amazonas, the oxygen stock was depleted in several hospitals in Manaus on Thursday, January 14th, according to medical reports. Patients died of asphyxiation, and relatives rushed in an attempt to purchase cylinders with their own funds.
The federal government announced that on Friday it began transferring patients to other states. Brazil also called on the United States to provide a suitable airplane to fly oxygen cylinders to Manaus.
Exemptions for weapons and tires
Despite having raised the import tax for items considered essential in the fight against Covid-19, the government has cut import taxes for sectors, which enjoy the support of President Jair Bolsonaro.
In early December, CAMEX zeroed import duties for revolvers and pistols. The measure was ultimately suspended by a Federal Supreme Court (STF) decision. Minister of Economy Paulo Guedes said at the time that the exemption would have an impact of R$230 million per year and considered the cost “very low”.
Source: Estadão Conteúdo
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