Brazil’s recent tax reform has introduced exemptions for essential food items such as cereals and animal proteins. Despite its strong ties to these basic products, however, the pet industry has been excluded from tax reductions, keeping pet food and veterinary supplies among the most heavily taxed items in the country.
According to the Brazilian Association of the Pet Products Industry (Abinpet), pet food bears a tax burden of nearly 50%, due to multiple levies. These include a state-level value-added tax on goods and services, a federal excise tax applied to industrialized goods, and social security contributions imposed on companies. In contrast, items classified as basic necessities in the food basket are taxed at rates between 7% and 20%. This excessive taxation distorts the market and affects consumers, making pet care an increasingly costly responsibility for local families.
The case for tax reform in the pet sector
While precise projections vary, industry experts argue that lowering taxation could increase production and sales. In countries where pet food taxation follows a more standard structure, such as Mexico, the industry benefits from a more balanced market structure, ensuring greater affordability and better access to pet care products.
Brazil’s current taxation model places the domestic pet sector at a disadvantage, both for consumers facing high prices and businesses struggling to compete in international markets. Abinpet has consistently advocated for tax reductions, arguing that pet food should be considered an essential product, much like human food, to ensure broader accessibility.
The financial burden of pet care — including food, veterinary expenses, and other necessities — often leads some owners to abandon their pets when they can no longer afford to keep them.
While taxation alone is not the root cause of pet abandonment, reducing the cost of pet food through lower taxes could help ease some of the financial pressure on families. In a region where millions of stray animals already struggle to survive, any measure that makes pet ownership more affordable could contribute to alleviating this growing social issue.
A missed opportunity in tax reform
While Brazil’s tax reform has succeeded in reducing the burden on basic food products, excluding pet food represents a major missed opportunity for both economic and social progress. Policymakers must recognize the long-term benefits of revising pet industry taxation, ensuring a fairer system that stimulates economic growth, increases tax revenue, creates jobs and promotes both animal and public health.
As advocacy groups continue to push for fairer taxation, the pressure is on lawmakers to reconsider the exclusion of pet food and veterinary supplies in future tax policies. A more balanced tax structure would not only benefit businesses but also millions of Brazilian families and their beloved pets.