Import Rate in Brazil could reach 92%

In a recent article, the retail giant AliExpress presented a detailed analysis regarding the legislative proposal known as the Mover program. According to this analysis, if the Mover program is approvedthere could be significant implications for Brazilian consumers, since the tax on products imported through Remessa Como can reach an impressive 92%.

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92% tax on imports

This alarming projection suggests that, if such a measure is implemented, Brazil could boast the dishonorable title of having “the highest rate in the world” in relation to taxes applicable to international purchases. Considering the sum of federal and state taxes, the consequences would be notable even for lower value transactions, specifically those less than US$50. The escalation in prices resulting from this taxation could make many products inaccessible to a large portion of the population.

The impact of this tax change was emphasized by AliExpress by directly mentioning how people in classes C, D and E would suffer more intensely with this tax increase. The scenario outlined is somewhat gloomy:

“This change will greatly affect the poorest population, who buy on international websites to access a variety of products at good prices.”

AliExpress criticizes Brazilian tax regime

Subsequently, the Chinese company spared no criticism of the current Brazilian tax regime, particularly due to its approach considered unfair when it comes to taxing small purchases.

This position is based on a comparison with the rules in force for those traveling abroad. Travelers, often belonging to higher social strata, can bring with them up to R$5,000 worth of products without incurring any taxes — the irony of this regulatory discrepancy did not go unnoticed by the e-commerce giant.

At the end of its statements, AliExpress showed its willingness to actively cooperate with the Brazilian government in the search for alternatives that benefit consumers. They maintain that the Remessa Conform program is a good example of initiatives that could be explored in this regard.

“…AliExpress is ready to work with the Brazilian government and other groups to find solutions with the most important thing in mind: the Brazilian consumer.”

Finally, it is worth highlighting that the situation remains uncertain with regard to the vote on the Mover program by the National Congress. The lack of consensus among deputies has stalled the process. As a reaction to this lack of definition and following the example of other virtual stores, AliExpress took a public position against the proposal for widespread taxation on imports, including supporting its point of view through research carried out on the topic.

Source: Estadão