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'Blouse tax' about to come into effect on Shein, Shopee and Aliexpress; find out how much tax you will pay on purchases over R$265

Written by Deborah Araújo
Published 20/06/2024 às 17:47
'Blouse tax' about to come into effect on Shein, Shopee and Aliexpress; find out how much tax you will pay on purchases over R$265
Photo: Canva

The 'blouse tax', a law that applies 20% to purchases under US$50 on sites such as Shopee, Shein and AliExpress, will be sanctioned by President Lula. How will this impact your online shopping?

Anyone who likes to shop on international sites like Shopee, Shein and AliExpress will now feel a pinch in their pockets. The recent approval of the so-called 'blouse tax' promises to change the rules of the game for those who make low-value purchases outside Brazil. With the new law, a 20% tax will be applied to purchases under US$50, and the project should soon be sanctioned by President Luiz Inácio Lula da Silva (PT).

What is 'blouse taxation'?

The 'blouse tax' is an import tax that will apply to purchases worth less than US$50 made on foreign websites. This 20% tax will be applied as soon as the project is sanctioned by the president. It is worth remembering that this measure does not follow the principle of anteriority, that is, it is not subject to the annuality and noventena, common in other contributions such as PIS, Cofins, IPVA and IPTU.

Currently, international purchases from online retailers worth up to US$50 are exempt from import taxes, requiring only the Tax on the Circulation of Goods and Services (ICMS), which varies between 17% and 19%. This is done through the Conform Remittance program, launched by the federal government last year. Items worth between US$50 and US$3 have a tax rate of 60%, and above this value, import is prohibited.

Understand that it will change with 'taxing blouses'

With the approval of the project and the imminent presidential sanction, international purchases of up to US$50 will be charged Import Tax, at a rate of 20%. Purchases within this limit will continue to receive the 17% ICMS rate.

For example, if a consumer buys a product that costs R$200 with shipping of R$20, the total purchase value is R$220. With the inclusion of ICMS (17% on R$220), the value rises to R$ 257,40. A 20% rate will be applied to this amount, resulting in an additional cost of R$44. The final price will be R$301,40.

President Lula says he thinks the import tax is “wrong”

The proposal for the 'blouse tax' was included in the Brazilian government's bill Green Mobility Program (Mover), which deals with incentives for the decarbonization of cars. This insertion led to heated discussions on social media, with many consumers complaining and asking for the charge to be removed.

Recently, President Lula stated that he thinks the collection of import taxes is “wrong”, but assured that he will not veto the bill approved by the National Congress. Previously, Lula spoke out against the measure and even indicated that the tendency would be to veto it. However, he has now committed to sanctioning the text agreed with Congress, avoiding further political strain.

In an interview with CBN radio, Squid highlighted a possible different treatment between citizens who make small purchases on international websites and those who travel abroad and buy items in duty-free shops. He questioned the fairness of the measure:

“Why tax $50? Why tax the poor and not tax the guy who goes to the duty-free shop and spends US$1? It is a matter of consideration for the humblest people in this country. Does a person who spends US$50 have to pay tax? And the guy who pays $2 doesn’t pay?”

Lula also mentioned that he agreed to put PIS and Cofins to charge around 20% as a way of guaranteeing the unity of Congress and the government, although he personally considers the measure to be wrong.

Impacts of the 'blouse tax'' in the consumer's pocket

The 'blouse tax' will directly affect consumers who make small purchases on sites such as Shopee, Shein and AliExpress. Previously, these purchases were exempt from import taxes if the value was below US$50. With the new law, these consumers will have to bear an additional cost of 20% on their purchases.

This means that, when buying a blouse that costs US$45, the consumer will pay another US$9 in tax, in addition to the ICMS. This increase may discourage many buyers who use international websites to purchase cheaper products.

Will the measure really bring benefits to local businesses or will it just penalize low-income consumers?

A fee approval generated varied reactions. Some consumers and experts believe the measure could help balance competition between local retailers and international websites. However, many consumers feel unfairly treated, especially those who make sporadic, low-value purchases.

While presidential sanction is awaited, the debate about the equity and effectiveness of the 'blouse tax' continues. Will this measure really bring benefits to local businesses or will it just penalize low-income consumers?

And you, what do you think about the new tax being charged on international purchases under US$50? Do you think this measure is fair or will it harm consumers? Leave your opinion in the comments!

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Deborah Araújo

I write about renewable energy, automobiles, science and technology, industry and the main trends in the job market. With a close eye on global developments and daily updates, I am dedicated to always sharing relevant information.

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