A new tax policy in São Paulo State is creating notable impacts on Brazil’s seafood market. Under a decree signed last week, the 7% ICMS tax previously applied only to imported tilapia has now been extended to all imported seafood products, including salmon, cod, pollock, hake, pangasius, and various marine fish species that were previously exempt from taxation.
This move comes amid growing pressure from imported tilapia in the Brazilian market. Industry organizations such as Peixe BR and Abipesca argue that imported tilapia fillets are significantly cheaper than domestic production costs, putting strong pressure on local fish farmers and seafood processors.
Representatives from Brazil’s aquaculture sector believe that the current 7% tax only partially eases competitive pressure and have proposed raising the rate to 14% to create a fairer competitive environment for domestic products.
However, seafood importers have opposed the broader application of the tax across all imported seafood categories. Abrapes stated that the policy could affect more than 110 companies and approximately 60,000 jobs in seafood processing and distribution. The association has urged state authorities to restore tax exemptions for seafood species that are not produced domestically in Brazil.
Alongside these tax measures, Brazil’s Congress is also reviewing a bill that would completely ban imports of tilapia and related products. If approved, this would mark the strongest move yet to protect Brazil’s domestic tilapia industry from growing competition from foreign suppliers.
