Taxation is added to ICMS and still generates criticism

According to a detailed forecast in next year’s budget proposal, which was recently sent to the National Congress, the Federal Government expects to collect R$700 million in 2024 as a result of the new taxation on international orders made mainly on websites such as Shein and Shopee.

The tax, which ended up becoming known as the “blouse tax”, is the result of an agreement between the Executive and Legislative branches, which aims to impose a 20% import tax rate on purchases made on international websites worth up to US$50, which were previously exempt from this tax.

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Implications of the new taxation and debate in Congress

The new tax, which does not apply only to medicines, is levied on the value of the product, without taking into account additional costs such as shipping or insurance. In addition, the Tax on the Circulation of Goods and Services (ICMS), which was already charged at 17%, will continue to be levied on the total value.

What happens is that the 20% import tax is charged on the value of the product, while the 17% ICMS is charged on the value already added to the import tax, so it ends up being a little higher than it would be without this tax.

This change came about in an economic scenario where the government is seeking new sources of revenue to balance public finances, which are under pressure due to high spending on social security and benefits. However, it was not without controversy, both inside and outside Parliament.

This is because since the idea was raised, it has generated intense debates in the National Congress, which have even ended in disagreements between parliamentarians and the Minister of Finance, Fernando Haddad.

Even President Luiz Inácio Lula da Silva (PT), who signed the bill into law, criticized the tax in a June interview with UOL, saying he found it “irrational” and “contradictory.” Lula highlighted the disparity between citizens who can travel and spend up to US$2,000 tax-free and those who buy lower-value products online and will now be taxed.

Government justifications and expectations

The decision to tax lower-value international purchases came as a way to create a new source of revenue at a time when fiscal space for “free spending” is increasingly reduced.

The government hopes that this measure will contribute significantly to balancing the budget, allowing it to maintain and even expand essential social programs. However, the measure remains a point of contention, with critics arguing that it could harm the purchasing power of Brazilian consumers and negatively impact the economy.

While the government seeks ways to deal with its fiscal limitations, the impact of this new tax will certainly be closely monitored by economists, politicians and even society in general, as it is still a reason for discussions about whether it is really worth it or not.

The expectation is that the expected revenue of R$700 million will help alleviate pressure on public accounts, but it still does not seem to be a good reason for it to be accepted willingly by consumers.

Fonte: G1