06/27/2024 – 14:36
President Lula sanctioned this Thursday, 27th, the project that regulates the Green Mobility and Innovation Program (Mover) and includes taxation on international purchases, which became known as the “blouse tax”. Tax collection is expected to begin in August.
The government will also publish a provisional measure to establish the beginning of the collection of the import tax and to ensure the exemption of medicines already provided for in a previous decree. According to the Minister of Finance, Fernando Haddad, he stated that taxes on international purchases over US$50 will come into effect from August 1st. The minister, however, stated that the government has not yet made a calculation on how much the management will be able to raise with the measure.
Mover’s PL initially only provided incentives for automakers to invest in more sustainable cars, but during its progress in Congress it also included 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 President of the Republic even said that he would veto the taxation if it was approved by Congress, but he gave in and decided to negotiate a “middle ground”.
Understand what changes
The text of the sanctioned project has not yet been released, but with the government’s decision, imported products will be taxed twice in August, with the new federal tax and the ICMS.
Currently, imported products worth up to 50 dollars (around R$265) 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%.
With the new taxation model, the 20% import tax is levied on the value of the product (plus any charges, such as shipping), and the ICMS must be calculated on the total purchase value, including federal tax. A purchase of R$100 (shipping and insurance already included), for example, currently exempt, now has a final price of R$140.40.
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, as currently only 17% ICMS is charged on international e-commerce.
The measure received the support of the president of the Chamber, Arthur Lira (PP-AL). The PT, however, was afraid that the measure would negatively impact Lula’s popularity.
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