Project that resumes tax on imports up to US$50 will be analyzed today in the Chamber of Deputies

This Wednesday (8th), the Chamber of Deputies is expected to vote on the bill that proposes charging Import Tax for purchases of up to US$50 made by individuals, covering the taxation of foreign platforms such as Shein and Shopee, of Asian origin.

Átila Lira (PP-PI), rapporteur of the bill that establishes the Green Mobility and Innovation Program (Mover), included in his opinion the revocation of the exemption for these imports. The exemption has been displeasing to Brazilian retailers, who complain of unbalanced competition with imported goods.

Revenue defends maintenance of the exemption

Átila Lira speaks, in his report, about “concern” about the national industry, when proposing the repeal of the measure. The IRS defended maintaining the exemption for purchases up to this amount, as the Conform Remittance program currently exists.

The exemption is also defended by PT deputies, but part of the government’s base, mainly parliamentarians closest to the Minister of Finance, Fernando Haddad, believe that the resumption of taxation is necessary not only to make foreign websites equal to national retail, but also as a fundraising instrument.

— This democratized shopping on websites and creates jobs in the country’s distribution chain — said the leader of Solidariedade, Aureo Ribeiro (RJ).

The project does not specify what the tax will be. Previously, it was 60% — the same value for purchases over US$50. The president of the Chamber of Deputies, Arthur Lira (PP-AL), even defended the section of the matter in plenary and denied that it was a “tortoise ”, when a topic is included in a different topic proposal.

— It is very clear that there is a tortoise within the project, which is why it does not deserve urgency. We need to analyze in more depth — said deputy Captain Alberto Neto (PL-AM).

Lira responded to the deputy and asked that the official transcript of the Chamber session ignore the expression “jabuti”.

— I ask that the shorthand notes remove the word “jabuti” from the text. It’s not a tortoise, deputy. Are we trying to equalize the competition of the national company, because the automobile company is more important than retail? Is it to break the country’s retail sector to the detriment of a narrative that you defend? The decision is to remove the parliamentarian’s speech about tortoise from shorthand — said Lira.

Shopee and Shein

In August 2023, the Remessa Compliance program, from the Ministry of Finance, came into force, which works on a subscription basis. With it, the Import Tax for purchases of up to US$50 was zeroed — previously, it was 60%. This goes for companies like Shopee and Shein.

Under the program, these companies must pay ICMS (state tax) of 17% on purchases of any value. Before the program, there were different state tax rates for these purchases.

To justify the end of the exemption, the rapporteur said that it could “create an imbalance with products manufactured in Brazil, which pay all taxes”.

Move Program

Mover predicts, by 2028, that companies in the automobile sector that produce in Brazil will be able to obtain financial credits to be used to reduce any taxes administered by the Federal Revenue or even be reimbursed in cash.

To do this, manufacturers must spend on research and development or technological production in the country.

Annual limits are set for such credits: in 2024, R$3.5 billion; in 2025, R$3.8 billion; in 2026, R$3.9 billion; in 2027, R$4 billion; and, in 2028, R$4.1 billion.