Brazil’s Pará Governor Moves to Scrap Grain Tax After Farmer Backlash

Pará Governor Helder Barbalho announced plans to revoke a controversial grain tax set to take effect next month, responding to strong opposition from farmers. The tax would have imposed a 4.32 real ($0.75) charge per 60-kilo bag of soybeans and a 2.09 real ($0.36) charge per 60-kilo bag of corn.

Barbalho’s decision, shared on X, follows mounting pressure from the agricultural sector, which warned the tax could hurt competitiveness. Soy farmers’ lobby Aprosoja Pará hailed the move as a “major victory” for the industry.

This development comes amid broader tensions over grain taxation in Brazil. In neighboring Maranhão, a new 1.8% export levy on grains has sparked controversy, with the state arguing that revenues will fund logistics improvements to benefit agribusiness. However, industry group Abiove, representing major grain merchants, has filed a lawsuit challenging the tax.

As Brazil remains one of the world’s top grain exporters, tax policies in key producing states like Pará and Maranhão have significant implications for global markets. Farmers and industry leaders continue to push back against measures they claim could undermine the sector’s growth and global competitiveness.

Barbalho’s move to repeal the tax underscores the growing influence of Brazil’s agricultural sector in shaping state policies. With tensions rising over new levies, the debate on taxation and agribusiness competitiveness is far from over.