Deputy proposes exemption for remittances up to US$50 and lower tax up to US$100 – 05/09/2024 – What tax is this

The rapporteur of the bill on taxation of international postal shipments (PL 2339/2022), deputy Paulo Guedes (PT-MG), presented an opinion on Wednesday night (8) that expands the tax benefits for these operations.

The parliamentarian suggests maintaining the Import Tax exemption for shipments up to a value of US$50 (around R$250).

It also proposes a 40% import tax rate for purchases on international marketplaces between US$50 and US$100 (around R$500).

For values ​​above, the rapporteur recommends the current rate of 60%.

According to Guedes, the text has the support of the PT bench in the Chamber and the Palácio do Planalto.

Currently, there is an exemption from Import Tax (federal tax) for shipments up to US$50. Above that, the tax is 60%. On any value, there is a state ICMS of 17%.

The Chamber of Deputies is considering ending the Conform Remittance program, which guarantees exemption from Import Tax for products worth up to US$50.

The end of the program was inserted by federal deputy Atila Lira (PP-PI) in the project report that creates Mover, a national Green Mobility and Innovation program.

As there is no relationship between the two topics, the end of the exemption is what is called, in Congressional jargon, a legislative “tortoise”.

The change still needs to be approved in the Chamber of Deputies and the Senate. It then goes to President Lula (PT) for sanction or veto.

The end of the exemption has the support of national retailers and opposition from platforms. (Read the report here with the position of each company and entity.)

Shein claims that it absorbed the 17% state ICMS payment when the program was created last year, but that there is no way not to pass on taxation that could reach more than 90% with the end of the exemption.

AliExpress says that, with the change, taxation on imported items of any value purchased via e-commerce will be 92%, the highest rate practiced worldwide.

The percentage refers to the sum of the two taxes, falling in cascade, with the ICMS calculated “inside” and also charged on the Import Tax.

Associations of companies in the textile sector claim that the current situation has established absolutely unfair competition, which has led to the closure of companies, especially small and medium-sized ones, and, consequently, jobs.

“The proposal responds to the calls of the Brazilian productive sector, which has faced, since August 2023, a scenario of absolute absence of tax equality, with the publication of an ordinance by the Ministry of Finance that exempted sales made through these international platforms from import taxes up to a limit of US$50”, say ABVTEX (Brazilian Textile Retail Association) and ABIT (Brazilian Textile and Apparel Industry Association).

Planalto and the Ministry of Development, Industry, Commerce and Services, headed by vice-president Geraldo Alckmin, called deputies to prevent the approval of the “jabuti”.

A group of parliamentarians linked to national retail claims that Minister Fernando Haddad (Finance) had signaled a favorable position to the charge, but the Treasury denies such a move.

Planalto monitors criticism against the government on social media related to the issue and its impact on President Lula’s popularity, although the end of the benefit is an initiative of the Chamber.