Brazil abolishes federal tax on parcels up to $50
Brazil has abolished the 20% federal import tax on international parcels worth up to $50. As the South China Morning Post reports, on September 3 the Senate approved the text of the legislative initiative, while buyers had effectively not paid this levy since May, when President Luiz Inácio Lula da Silva abolished it through a temporary regulatory measure.
The abolished levy in Brazil was called the “little blouse tax” because it had the greatest impact on inexpensive clothing, phone cases and household goods. It applied to orders placed through platforms certified under the Remessa Conforme program, including Shein, Shopee and AliExpress.
Which taxes remain
The abolition of the federal levy does not mean that purchases are fully exempt from taxes. A state tax, similar to value-added tax, ranging from 17% to 20% will continue to apply to all international orders.
For parcels worth from $50.01 to $3,000, a federal rate of 60% applies, but a $30 discount on the calculated tax amount is provided. Thus, for a shipment worth $100, the federal tax will be $30: $60 at the 60% rate minus the $30 discount.
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According to the federal tax authority, in June the country received a record 28.36 million international parcels — 118% more than a year earlier. This was the first full month after the levy was abolished; from January to April, the average stood at 15.4 million parcels per month.
Industry position and reform
Brazil’s National Confederation of Industry stated that the change gives foreign manufacturers an advantage over Brazilian ones. The country’s textile association also criticized the decision, noting that about 80% of clothing sold in Brazil is priced below the $50 threshold.
The Ministry of Finance estimated the budget losses from the exemption at about $360 million this year and nearly $1.8 billion by 2028. At the same time, the tax reform provides that from 2027, international purchases of any value will again be subject to a federal levy.
