President again said that the way out for “possible irregularities” is inspection and not tax increase
President Jair Bolsonaro (PL) said again this Sunday (17.Jul.2022) that he will not sign any initiative to collect taxes from foreign platforms that import products from China to people in Brazil, such as, for example, shopee, AliExpress and Shein. According to the Chief Executive, “the solution is to improve enforcement, not increase fees”.
“I repeat: any initiative to tax purchases through apps like Shopee, AliExpress, Shein, etc., will not count on my signature. Frauds exist in many services and the solution is to improve enforcement, not increase fees. Our policy is to reduce taxes”, published on twitter.
Companies specializing in this procurement service remain exempt from taxation by the Internal Revenue Service on imports of up to US$ 50 for books, magazines, other periodicals and medicines.
In May, Bolsonaro had already said he would not sign an MP (provisional measure) to tax Chinese digital commerce companies. At the time, however, Minister Paulo Guedes (Economy) suggested a digital tax and spoke of “camelodrome” virtual.
“The world is rapidly changing. The guys are really dumping the camelódromo. […] So, for the abuses that are committed, and the transactions that are made – whether in bitcoin or something else –, digitax will appear [imposto digital] to equalize the game”said Guedes during a live.
Context
On March 23, a group of businessmen presented a letter to the PGR (Attorney General’s Office) with complaints against foreign companies that import products from China. The action was led by the owner of the retailer Havan, Luciano Hang, and by the CEO of Multilaser, Alexandre Ostrowiecki, in addition to the support of several manufacturers’ associations.
As per the job, published by the newspaper The State of São Paulothe platforms adopted a “engineering construction of how to circumvent the Revenue”. The document, which reproduces images from advertisements and cites sites such as AliExpress, Wish, Shein, Shopee and Mercado Livre, proposes to modify tax rules so that individuals pay taxes at the time of purchase. The material was also presented to Guedes and Bolsonaro.
The complaint suggests the under-invoicing of invoices and the re-labeling made by Sweden to circumvent the inspection at the Federal Revenue. The material presented to the PGR also indicates that imported products are subsequently sold in e-commerce in local transactions and cites platforms such as Shopee and Mercado Livre.
The practice used by the sites, according to the entrepreneurs, seeks to avoid the collection of fees and taxes.
#Bolsonaro #taxing #Chinese #ecommerce #companies