New blouse tax comes into effect in August

The Brazilian government’s new “blouse tax” on imported products will start to be charged from August 1st. Last Friday (19), AliExpress showed a simulation of how prices will be affected by the tax. With the new Import Tax, international purchases of up to US$50 (approximately R$280) will be more expensive.

AliExpress used an example of a purchase of R$100, including the product and shipping. The final amount will be R$120.48, including ICMS until July 27th. After that date, the total will increase to R$144.58, meaning the customer will pay more than 44% in taxes: 20% Import Tax and 17% ICMS.

Why 44% and not 37% tax?

Although the sum of ICMS (17%) and Import Tax (20%) is 37%, the charge is made in an order that increases the final value. First, the “blouse tax” is applied to the price of the product with shipping. Then, ICMS is calculated on the total (product price + shipping + import tax). In other words, we are talking here about taxation on taxation. Therefore, the calculation of taxes must follow this order:

• Convert the product value to reais;
• Add shipping cost;
• Calculate 20% of the total and add it to the amount;
• Apply 17% to the new value and add again.

The “blouse tax” only applies to low-cost products. For high-value purchases abroad — up to US$3,000 (R$16,785) — there is already an Import Tax of 60%. With the new rules, this tax remains, but now with a fixed deduction of US$20 from the Import Tax before applying the ICMS.

AliExpress also exemplified the calculation with a simulation:

And the partnership between AliExpress and Magalu?

From July 31st, the AliExpress will start selling products from the Choice line on the Magalu website and app. This partnership is part of the “Muralha” project, including Magalu’s participation as a seller on the Chinese platform.

Experts see the partnership as beneficial for both companies, highlighting:

• Reduction of logistics costs;
• Greater product distribution capacity in Brazil;
• Expansion of the offer in the catalogs;
• Use of new technologies and marketing strategies.

In addition, the Chinese e-commerce company intends to reduce prices and delivery times. This is the first time that AliExpress has operated on a third-party platform and that Magalu has acted as a seller on another marketplace.

However, despite these advantages, the partnership between the two retail giants does not in any way affect the new taxes that will make Brazilians’ purchases more expensive.