Alckmin says that taxing international purchases of up to US$50 is the ‘next step’ – 11/29/2023 – Market

The acting president, Geraldo Alckmin (PSB), stated this Tuesday (28) that the resumption of the Import Tax is “the next step” to be taken by the government in measures aimed at international purchases of up to US$50.

Import Tax is currently exempt for purchases of up to US$50 in the case of retailers that are certified in the Remessa Compliance program (created by the government in 2023), which is the target of criticism from Brazilian competitors. Above this amount (including shipping and other charges), a rate of 60% is charged.

“Electronic commerce, work was done on digital platforms to formalize imports. ICMS taxation has already started and the next step is Import Tax, even with less than US$50”, stated Alckmin at an event in Brasília.

Later, at another event, he said that there had been no decision on the matter. Even so, he defended the measure.

In addition to the federal tax, all states are charged a rate of 17% of ICMS (Tax on the Circulation of Goods and Services) on import operations via electronic commerce, as already defined by Confaz (National Council for Financial Policy).

The resumption of a 20% Import Tax has already been considered in the 2024 Budget proposal. In total, the economic team expects to raise R$2.86 billion with the tax on international goods, which includes increased inspection and initiatives such as Conformal Shipping.

The executive secretary of the Ministry of Finance, Dario Durigan, highlighted, in September, that the decision on the value of the federal import tax had not yet been taken by the economic team.

“We are considering a minimum rate, as companies have proposed to the federal government, around 20%. But this definition was not made by the government. We are starting from a floor that the companies themselves in the debate have suggested to the government” , said Durigan.

In August, the executive secretary of Finance had already said in an interview with GloboNews that the department would study the review of taxation for international purchases of up to US$50 so that there is no different treatment between Brazilian retail and international ecommerce.

Taxing international orders is yet another initiative that can help the government in its task of increasing revenue and maintaining the quest to eliminate the deficit in 2024.

In next year’s Budget project, the economic team included R$168 billion in extra revenue, from measures that still need Congressional approval or implementation by the Executive.