Lula win may lead to a taxing time for Chilean salmon farmers
VAT on the fish will make it less competitive against exempted animal proteins such as beef
Published
Salmon produced in Chile is facing high taxes in its second-largest market, Brazil, following the surprise election defeat of right-wing presidential candidate Flávio Bolsonaro, reports Fish Farming Expert's Chilean sister site, Salmonexpert.cl.
Brazil aims to simplify its highly complex tax system by phasing in a revised VAT (value added tax) administered at the federal and regional levels.
Bolsonaro, who had won the first round of voting for a new president, argued that over time the reformed system could result in an effective VAT rate of approximately 28%, and had proposed revising parts of the reform. His defeat in the polls at the weekend means the VAT reform is likely to go ahead as planned under the administration of returning president Luiz Inácio Lula da Silva.
Not among the basics
Brazil has listed a basket of basic foods that is exempt from VAT, but salmon is not among them. The VAT-free foods include other animal proteins such as beef, pork, poultry, sheep/goat meats, and fish, although there are specific statutory exceptions, including salmon.
Other VAT-free items include rice and beans; dairy and infant products; specific cheeses; butter, margarine, and soybean oil; flour and grains; bread and pasta products; coffee, sugar, and salt; and specialised items such as mate (tea) and low-protein or metabolic-disorder formulas.
According to figures from Chile’s Customs department, the volume and value of salmon exports to Brazil grew significantly in the first half of this year, reaching 85,945 tonnes worth US $519 million. That’s a 14.7% increase in volume and 9.7% in value compared to the 74,910 tonnes sold for $473m in H1 2025.
A complex discussion
The president of SalmonChile, Patricio Melero, told Diario Financiero that during the Seafood Show Latin America in Sao Paulo, Brazil, coordinated work took place together with Isa Kort, Chile’s ambassador in Brazil, export agency ProChile, and fellow trade body, the Salmon Council.
Melero acknowledged, according to Radio Biobío, that it is a very complex discussion, “but we will continue to carry out efforts to have salmon recognised as an essential food in the Brazilian diet”.
Loreto Seguel, president of the Salmon Council, said the objective is “to create the conditions to achieve a positive solution in tax matters” through business diplomacy and a long-term perspective.
