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    Home»Economy»The government is carefully considering taxing purchases up to $50
    Economy

    The government is carefully considering taxing purchases up to $50

    Charlotte WhitmoreBy Charlotte WhitmoreJanuary 27, 2024No Comments4 Mins Read
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    The government is carefully considering taxing purchases up to
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    The government of President Luiz Inacio Lula da Silva noted a change in the volume of international purchases of up to US$50 after the establishment of the Remessa Compliance programme. The federal administration must carefully analyze the taxes imposed on these tax-exempt products.

    + Read more news from Brazil in Oeste

    According to preliminary analysis, there has been a significant decline in the volume and revenue of these products. Companies replaced part of the supply with items from national suppliers.

    The government fears that the new taxes will make it difficult to regulate foreign platforms and hurt the current preference for local companies in the country Markets — Large online stores that allow small businesses to sell their products.

    According to the newspaper Folha des PauloA member of the government said: Markets International players are no longer viewed negatively by management. Businesses have cooperated with the government and are now treated as taxpayers.

    Read also: “Haddad promises to review the scope of income tax exemption”

    Business and government collaborate through Remessa Compliance – a federal revenue program that exempts the import of goods up to $50 in value for purchases made in Markets Participants. The main companies cooperating are Shein, AliExpress and Shopee. In return, companies are obligated to follow tax rules.

    The taxes will offset the revenue losses

    Exemption of Fernando HaddadExemption of Fernando Haddad
    A blacksmith must analyze potential taxes Photo: Marcelo Camargo/Agence Brasil

    Parliamentarians have proposed a tax on international purchases of up to US$50 as a way to compensate for revenue losses due to maintaining the payroll tax exemption. This measure reduces taxes on 17 sectors of the economy and city councils.

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    Taxes have been announced before Ministry of FinanceBut it caused negative repercussions, especially on social media. A few days after this announcement, the government reversed its decision and said that it would no longer impose taxes.

    Read more: “Tax: ICMS will rise in the Federal District and in 10 states”

    In the opposite direction, states have implemented a 17% ICMS tax on these products. Technicians reported that this rate would have significantly changed the number of imported purchases Bound.

    In the January-November period last year, the central bank identified an 11% decline in purchases of small goods compared to the previous period.

    Finance Minister Fernando Haddad is scheduled to receive a detailed report assessing potential taxes on international purchases of up to US$50. Technicians from the ministry reviewed data on exchange transactions, provided by the Central Bank, with the aim of identifying signs of underbilling.

    Companies can stop cooperating with the government

    Currently, technicians evaluate that the statements made by the companies participating in Remessa Compliance are proven to be correct. This would affect the government's decision, which sees the possibility of cooperation problems between companies if they return to taxes.

    said Brisa Bueno, AliExpress Country Manager in Brazil Bound Consumers notice the impact of taxes on purchases. The company identified a decrease in consumer purchases after implementing Remessa Compliance.

    Read more: “Farm wants to resume import tax on online purchases”

    For international purchases over US$50, consumers pay ICMS tax and import tax at a rate of 60%. The company estimates that total taxes will reach 92% on these items.

    “We noticed that the Brazilian consumer felt the impact of the taxes,” Preza said. “Reduce your purchases on global platforms, especially items over $50.”

    The government fears that imposing taxes on cheaper purchases will lead to a sharp decline in the number of purchases made by Brazilians. This has influenced the union to talk to the US in an attempt to increase the amount charged by ICMS. This way there will be less political pressure and a greater impact on revenues.

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    Charlotte Whitmore

    Charlotte Whitmore is a contributor at Mediarunsearch.co.uk, covering a broad range of topics including news, politics, business, technology, sport, entertainment, and lifestyle. She focuses on delivering clear, balanced reporting and practical information that helps readers stay informed about current events and emerging developments. Her work highlights stories that matter to everyday audiences, with an emphasis on accuracy, relevance, and accessible journalism that keeps readers connected to the issues shaping the UK and beyond.

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