Brazilian Senate Approves Taxing International Purchases of up to $50 at 20%

Taxation is reinserted into the Mover bill after being removed by the rapporteur

The Senate approved yesterday the imposition of a 20% tax on international purchases of up to $50, which are currently exempt. The measure affects platforms like Shopee and Shein.

The provision to end the exemption had been inserted by the Chamber into the Mover bill. In the Senate, it was removed by the rapporteur, displeasing the president of the Chamber, Arthur Lira. This Wednesday (5), it was reinserted into the text.

Mover, a decarbonization program for the automotive sector, was previously approved without the tax. Later, the senators voted on the taxation and reinserted it into the bill in a symbolic vote. As the text underwent changes, it will have to return to the Chamber.

During the proceedings in the House, the Lula government and deputies had reached an agreement on the taxation.

The text on Mover received other provisions, the so-called "jabutis" – one related to the oil sector and two new fiscal regimes for alcohol fuels and bicycles.

The taxation of low-value purchases is seen as unpopular by politicians. Those who defend it argue that the current exemption causes market distortion and harms domestic industry.

Read the article in the original language