From Reutersi From Reuters https://istoedinheiro.com.br/autor/da-reuters/
04/25/2024 – 13:09
The Secretary of Tax Reform of the Ministry of Finance, Bernard Appy, said this Thursday, 25th, that, after the transition period, all international remittances sent to Brazil will pay Contribution on Goods and Services (CBS, federal tax) and Tax on Goods and Services (IBS, state and municipal tax).
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Currently, the government’s Conform Remittance program grants exemption from federal taxes for purchases from abroad with a value of up to 50 dollars — ICMS is charged by the States. Products with higher values already pay all taxes currently.
According to Appy, even these low-value items will suffer state and federal charges after the implementation of the consumption tax reform.
According to him, the Import Tax, currently zero for items worth up to 50 dollars, is not impacted by the reform. The government, however, is considering raising this tax amid pressure from domestic retailers, who allege unfair competition from foreign companies.
Full regulation of the tax reform should take place between 2024 and 2025, depending on the approval of deputies and senators. The transition to the new model is scheduled to begin in 2026. According to the government, the objective is to maintain the current tax burden during the transition process.
