Efeitos potenciais da política tributária sobre o consumo de alimentos e insumos agropecuários: uma análise de equilíbrio geral inter-regional

This paper analyses the potentials long run effects on theBrazilian economy of two policies in the field of the indirect taxes: a)the reduction of indirect taxes on food consumption by the householdsand; b) the reduction of indirect taxes on the main inputs used in theagricultural activity. The analysis is accomplished through two simulationexercises using a static inter-regional applied general equilibriummodel. The benchmark year is 2001. The results of both simulationsare found to be similar, except in terms of magnitude: the most intenseeffects are associated to the reduction the taxation on foods. Both simulationsshow expansion in the level of economic activity in the poorestregions of the country and reduction in the richest. They also showa potential for improving the welfare of the low income classes in allregions, especially in the poorest: North and Northeast. The negativeimpact on the governments’ revenue is the main restriction to the implementationof these policies. Results also show that the effects of taxpolicies differ among regions, sometimes substantially, what strengthenthe usefulness the interregional applied general equilibrium models forthe analysis of tax policies impacts in Brazil.