Brazilian Chamber Approves Tax for Purchases up to US$ 50 on Foreign Websites

Taxation reaches 20%; Controversial project still needs to be sanctioned by Lula

Brasília

The Chamber of Deputies approved, this Tuesday (11), the taxation of international purchases up to US$ 50, the so-called "tax on blouses," within the main text of the Mover bill, which creates a program to encourage the decarbonization of cars. The proposal, called by critics a "jabuti" —when something is inserted into a project that is unrelated to its original theme— ends the tax exemption for such imports.

The import tax exemption benefits well-known online stores such as Shopee and Shein. Today, products up to US$ 50 sold on these sites are already taxed by ICMS, which is state-level and has rates ranging from 17% to 19%. For cheaper products, the import tax will be 20% on the value, according to the project approved this Tuesday. For items above US$ 50, the proposed tax is 60%, but an intermediate range was also created, between US$ 50 and US$ 3,000, which will have a US$ 20 discount on taxation. To become law, the project still needs to be sanctioned by President Lula (PT), and there is an agreement for this to happen, according to government base deputies.

Ending the exemption is seen by many as unpopular, as it affects purchases made by thousands of people, which could bring political damage in an election year.

Read the article in the original language