On 23 September 2021, the government announced the exemption of maize imports from federal taxes until 31 December 2021. This temporarily removes the applicable rates of PIS (profit participation contribution) and COFINS (social security financing contribution), which were in place at 1.65 percent and 7.6 percent, respectively.

The measure seeks to boost national supplies and contain price increases. Prices of maize have been generally on the rise in 2021 and prices in August were about 80 to 100 percent higher year on year. The sustained increases have been driven by strong international demand and concerns over the impact of dry conditions on 2021 crops. With the harvest of the main (second) crop completed in September, the 2021 maize production is officially estimated at 85.7 million tonnes, a three-year low.

The temporary suspension of federal taxes follows other measures that the government has taken in the past months to tackle price increases, including removal of import duties on maize grain until the end of 2021 and auctions for public maize stocks.