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    Home»Economy»The government says it is negotiating to end the tax credit for purchases of up to $50
    Economy

    The government says it is negotiating to end the tax credit for purchases of up to $50

    Charlotte WhitmoreBy Charlotte WhitmoreAugust 10, 2023No Comments2 Mins Read
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    The government says it is negotiating to end the tax credit for purchases of up to
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    Import tax may be refunded on online purchases of up to $50 USD at overseas retailers.| Image: Bigstock.com

    President Luiz Inacio Lula da Silva’s (PT) government may resume imposing an import tax on purchases of up to US$50 on websites abroad, which has been exempt since Aug. 1. This measure was mentioned by Finance Minister Fernando Haddad to parliamentarians on Wednesday (9).

    Initially, the immediate termination of the exemption and the charging of the 34% tax to consumers were discussed, according to information obtained from the website. capital Cities. However, the department stated shortly thereafter that negotiations were under way for “future adjustments to the federal rate” in parallel with a 17% raise of ICMS by the states.

    “All rules of the Revenue Compliance Program continue to apply, and negotiations are continuing, under Department leadership, regarding future adjustments to the federal rate,” he said in a note.

    The import tax exemption came into effect at the beginning of the month and changed the previous measure, which covered trade between individuals only. The decree also included companies that already had an ICMS occurrence at the time of purchase, and no longer only when the goods arrived in Brazil.

    Collecting taxes and future taxes on great wealth is part of the government’s effort to raise R$100 billion to offset the deficit in public accounts next year. For this, it is necessary to approve changes in the legislation this year.

    However, taxation of large fortunes may take a little longer to take off, as Labor Leader in the House of Representatives, Zika Dirceu (PR), predicted last Tuesday (8). According to him, the party benches may temporarily “give up” in order to complete processing in Congress of the economic measures that were referred in the first half of the year, such as the new fiscal framework, consumer tax reform, and changes to the administrative system. Resource Council (CARV), among others.

    See also  The UK budget deficit widened in July, but remains below official forecasts

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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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