Brazil's Para state set to reverse tax on grain production

SAO PAULO (Reuters) - The governor of the northern Brazilian state of Para said on Tuesday he will propose a bill to revoke a state tax on grains production.

Governor Helder Barbalho said in a post on X his decision came after listening to farmers about the law, which was set to take effect next month.

Among other provisions, the tax would impose a 4.32 real ($0.7527) charge on a 60-kilo bag of soybeans and a 2.09 real ($0.3641) charge on a 60-kilo bag of corn.

In a statement, soy farmers' lobby Aprosoja Para dubbed the decision an "important victory," adding it was "essential to the competitiveness and development of the sector."

The governor's decision comes amid criticism from farmers and an industry lobby regarding another new state law imposing a 1.8% levy on grain exports from neighboring Maranhao.

While Maranhao state has defended the levy, saying proceeds from it will go toward investments in logistics, benefiting the entire agribusiness sector, industry group Abiove, which represents global grain merchants, filed a suit against the measure last week.

($1 = 5.7396 reais)

(Reporting by Andre Romani and Ana Mano; Editing by Kylie Madry)

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