Industry and unions celebrated taxation for international purchases of up to US$50 approved by the Senate; the text goes to Lula’s sanction
Industry representatives celebrated the approval in the Senate of the PL (Bill) of “shopping”, which will tax international purchases of up to US$50 by 20%. The text was approved on Wednesday night (June 5, 2024) in a symbolic vote.
A letter signed by 67 trade and union associations said the decision is a “relevant step” for tax equality between foreign productions and national industry. Here’s the complete (PDF – 763 kB).
“There is no reason to grant any type of privilege to foreign sites in relation to the national production sector, which strictly follows all compliance standards and pays more than 90% in taxes,” the letter said.
The entities also said that the Federal Revenue Service must be able to monitor imports, highlighting that the new legislation can be circumvented through under-invoicing of the declared price and splitting sales.
“At this moment, however, it is up to the national productive sector to thank the republican spirit and protection of economic activities and jobs in all regions of Brazil brought about by this decision by the Federal Senate”.
A CNC (National Confederation of Commerce in Goods, Services and Tourism), also praised the proposal. He said that the sector’s losses, with taxation, fall from 57% to 7% and that “follow carefully” the presidential sanction.
The entity also said that the increase in federal taxes does not constitute an increase for the end consumer, “a necessary action to ensure the sustainability of national trade”.
“The measure guarantees fairer competitiveness between national and imported products, promoting a more balanced environment for the development of Brazilian retail.”, stated the CNC.
Read the full CNC note:
“CNC sees approval of import tax by the Senate as positive
“A study by the Confederation shows that, with the measure, losses fall from 57% to 7% in retail sales volume
“The CNC (National Confederation of Commerce of Goods, Services and Tourism), on behalf of national retail, sees as positive the approval by the Senate of Bill (PL) 914/2024, which contemplates the end of the import tax exemption for products worth up to US$50. The exemption had a significant impact on Brazilian retail, raising concerns about the competitiveness of the national sector. Confederation studies indicate that non-taxation caused a drop of up to 57% in retail sales volume, considering direct, indirect and induced effects. With the start of charging 20% import tax, the estimated loss drops to 7%.
“In view of this scenario, the CNC reiterates the importance of applying the 20% import tax rate as a way of minimizing damage to the Brazilian economy and protecting jobs and income generated by trade. The measure guarantees fairer competition between national and imported products, promoting a more balanced environment for the development of Brazilian retail.
“The Confederation highlights that taxation is not a tax increase for the final consumer, but rather a necessary action to guarantee the sustainability of national trade. The CNC will continue to defend unrestricted actions that promote the competitiveness of national companies and the generation of jobs and income for the country.
“The CNC closely monitors the presidential sanction of PL nº 914/2024 with the device that creates a 20% import tax rate on products worth up to 50 dollars”.
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