06/28/2024 – 19:49
The so-called “blouse tax”, a tax that will begin to be charged on international purchases of up to US$50, comes into effect from August 1st. However, consumers who plan to purchase in the days close to that date may already have to pay the tax.
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This is because, according to the Federal Revenue Service detailed in a press conference on the afternoon of Friday, the 28th, the tax will be charged upon issuance of the DIR – Import Shipment Declaration. In other words, a purchase made on July 29th, for example, may have the DIR generated by the retailer’s website only on August 2nd, already incurring the tax.
“Purchases made shortly before August 1st may already be subject to the tax. Once the purchase is made on the platform, there is a deadline to submit the declaration record [DIR]. And each one has its deadline. The platform will have to inform customers”, explained Fausto Vieira Coutinho, Under-Secretary of Customs at the Federal Revenue.
Coutinho said he would meet with representatives of the main retail platforms this Friday to discuss the most transparent and rapid communication possible to customers about the incidence of the fee.
He also said that, with Conformal Remittance, the tax must be included in the purchase. “We made a huge effort in 2023 and 2024 to improve customs control of international shipments. We had 2% of the information recorded. We now have between 90% and 95% registration [de compras] of platforms”. According to the secretary, international remittances have a volume of around 15 million per month, reaching a peak of up to 18 million.
The Secretary of Revenue reinforced the statement made by the Minister of Finance, Fernando Haddad, that the government has not yet made a calculation on how much management will be able to collect with the measure. “This is not a fundraising measure. It is not part of our customs area, so there was no estimate”.
How much is the “blouse fee”?
Currently, imported products worth up to US$50 are exempt from import tax and are only charged by the state Tax on Circulation of Goods and Services (ICMS), at a rate of 17%.
From August 1st, purchases made on international retail websites worth up to US$50 will be charged 20% tax. So a $50 purchase will pay $10 in tax.
What about above $50?
From US$50.01 to US$3,000, the tax charged is 60%.
A $200 purchase, for example. 20% will be charged on the first US$50, that is, US$10 in tax, plus 60% on the remaining US$150, or US$90, totaling US$100 in taxes.
Medicines
The new fee will not be applied to medicines. The same current exemption rule for medicines purchased abroad will be maintained. The Brazilian government currently guarantees import tax exemption for medicines purchased by individuals and costing up to US$10,000. The release of these medicines with zero taxation depends, however, on the products meeting requirements established by the National Health Surveillance Agency (Anvisa).
The soap opera of the “blouse tax”
President Lula sanctioned on Thursday, the 27th, the project that regulates the Green Mobility and Innovation Program (Mover) and includes taxation of international purchases, which became known as the “blouse tax”. The tax is expected to begin in August.
The Mover Bill initially only provided incentives for automakers to invest in more sustainable cars, but during its passage through Congress it also began to include a 20% import tax on international purchases of up to US$50.
The approval of the Import Tax, which affects products from Asian websites such as Shein and Shopee, occurred after an agreement between Congress and the federal government, but there was resistance from Lula at the beginning of the discussions. The term “blouse tax” refers to “memes” on social media, which associated cheaper “blouses” with Asian e-commerce.
The 20% rate on foreign e-commerce was a “middle ground” and replaced the initial idea of applying a 60% charge on goods that come from abroad and cost up to US$50. The percentage will be 60% for more expensive products, but a discount of US$20 was also included on purchases over US$50 up to US$3,000.
Taxation is a demand from the national retail sector, which sees unfair competition with the exemption for foreign companies, since today only 17% of ICMS is charged on international e-commerce.
The measure received the support of the Speaker of the Chamber of Deputies, Arthur Lira (PP-AL). The PT, however, was afraid that the measure would negatively impact Lula’s popularity.
Lula even criticized taxation
Despite the presidential sanction, Lula signaled his opposition to the tax. In an interview with Rádio CBN on the 18th, the PT member said he thought the taxation was wrong. “Why tax $50? Why tax the poor and not tax the guy who goes to the duty-free shop and spends a thousand dollars?”, he asked. “It is a matter of consideration for the humblest people”, citing that this was his disagreement. At the time, Lula highlighted that the sanction would be carried out by “the unity of Congress and the government, of the people who wanted it”.
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