‘Digital tax’: Haddad talks about tribute without burdening the buyer – 04/20/2023 – Market

Finance Minister Fernando Haddad said this Thursday afternoon (20) that the government plans to adopt the so-called “digital tax” on e-commerce orders.

“We want to follow the example of developed countries, adopting what they call ‘digital tax’. When the consumer buys online, he will be relieved of any payment, which will have been made by the company, without passing on the cost to the consumer”, said the minister.

In the interview with journalists, the minister did not give details about the new proposal and the amount from which the charge will be made has not been defined.

According to Sheet found out, the idea is not to create a new tax, but to improve the tax collection system that already exists to facilitate electronic collection “at source”, before sending the goods.

Haddad met in São Paulo with the executive vice-president of Shein, Donald Tang, and other executives, in a meeting intermediated by the president of Fiesp (Federation of Industries of the State of São Paulo), Josué Gomes.

The suggestion of adopting the “digital tax” comes after the wear and tear that the government of President Luiz Inácio Lula da Silva (PT) has gone through in recent days.

On Tuesday (18), the government had to withdraw from the end of the import tax exemption for orders of up to US$ 50 (R$ 247) sent by individuals and also destined for individuals. According to Haddad, President Lula asked the economic team to withdraw from the proposal.

The PT minister has reinforced that the government seeks measures to improve inspection and prevent giant international e-commerce companies from taking advantage of loopholes to obtain tax benefits and exemptions.

“We want foreign investment, we appreciate electronic commerce, nothing against it, but we want competitive conditions so that we don’t harm jobs in Brazil, Brazilian retail stores, we want people to have the same conditions”, said Haddad this Thursday .

Haddad said that the Chinese trading company Shein will nationalize 85% of sales in the country in four years, with production of goods starting to be carried out in Brazil.

Shein has also committed to adhering to an IRS “compliance plan”.

A “digital tax” proposal had already been suggested by Paulo Guedes, who was Jair Bolsonaro’s (PL) Economy Minister.

At an event with executives in May 2022, he stated that there is a massive invasion of Chinese products in Brazil, with some transactions made in bitcoin so as not to generate a trace. To prevent fraud, Guedes then suggested creating a digital tax.

“The abuses that are committed and the transactions that are made —whether in bitcoin or something else—, the ‘digitax’ will appear right away to equalize the game”, he said.

Famous for his controversial phrases, Guedes took the opportunity to mock the Chinese socialist model and said that the country, in fact, is a wild capitalist.

“Roberto Campos used to say that a smuggler is someone who puts his own life at risk for the defense of his ideals [risos]. I mean: the guy really wants to do free trade, goes under the Federal Revenue Service, goes through customs, doesn’t pay labor charges, doesn’t have a minimum wage. So Chinese is really wild, 18th-century capitalism.”

With Reuters