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Brazil removes import tax on small overseas parcels
The move rolls back a levy that had targeted low-value items like shirts and electronics, a change Lula described as social-justice driven ahead of the Oct. 4 presidential election.
Brazil has eliminated a federal import tax on small overseas parcels, reversing efforts seen in the United States and European Union to close a loophole tied to rapid growth of Chinese online retail platforms. South China Morning Post reports the Brazilian levy had applied to lower-value goods including shirts, electronics, toys, and kitchen gadgets, and it drew enough pushback to force Brasilia to back down.
The tax removal is expected to weigh on Brazil’s tax base, but local opposition ahead of the Oct. 4 presidential election was a key factor, according to the report. The change comes as political dynamics remain in focus, with President Luiz Inacio Lula da Silva opting not to hold a formal signing ceremony for the legislation.
In a campaign video shared on social media, Lula framed the measure as social justice, contrasting tax treatment of upper-middle-class travelers who spend abroad with the taxation faced by shoppers from favelas buying lower-priced goods. He said the goal is to let Brazilians buy needed items without those purchases being “bother[ed]” by import charges, the outlet noted.