Entrepreneurs say they will dismiss with tax exemption for purchases up to US$ 50

One week after being criticized by the industry for allowing import tax exemption for purchases of up to US$ 50, the government of President Luiz Inácio Lula da Silva (PT) is the target of yet another complaint and businessmen. The Institute for the Development of Retail (IDV) said, on Tuesday (11), that the sector may lay off employees and close stores due to legislation that mainly benefits online retailers such as Shein, AliExpress, among others.

The IDV states, in a statement, that this measure is “causing concern in the sector”, which is preparing for a “wave of layoffs and store closures, penalizing national companies, of all sizes, that generate formal jobs and pay their taxes ”. Institute calculations indicate that the exemption from the tax, which until then was valid only from individual to individual, made the government fail to collect R$ 137.7 billion in the last five years.

The entity alleges that retail is treated unevenly with online retailers. According to the IDV, the tax burden of Brazilian companies varies from 80% to 130% throughout the production and distribution chain, while digital platforms are taxed at just 17% referring to ICMS.

“It is unacceptable that the government encourages non-compliance with tax payments and punishes companies that comply with their tax obligations. This ends up encouraging the closure of companies and the creation of jobs in other countries, ”he said.

The government measure was classified as a legalization of smuggling by businessmen. João Pinheiro Nogueira, president of Lojas Marisa, said at an IDV meeting that he cannot understand “how a government, even more so of the PT, is capable of the absurdity of legalizing contraband against the interests of national industry”.

“The minister had promised exactly the opposite of what was published, but he seems to have lacked the strength to continue with the fight against smuggling”, he added.

The exemption, which now covers sales between foreign companies and individuals up to US$ 50, takes effect on August 1st. Retailers must join the IRS compliance program to benefit from the measure.

Equal taxation

The entity that represents retail asked the government that Brazilian industry and commerce be treated equally, “so that the facilities and tax benefits granted to digital platforms for international sales are also applied internally”.

“Therefore, if federal taxation is maintained at zero on imports carried out through international orders, it is necessary, at the same time, to apply the reduction of the tax incidence on national trade to the same level – that is, zero”, said the IDV in the communicated.

The IDV also said that it is calling the National Consumer Secretariat and the Post Office so that “all obligations of an import process are fulfilled”.

Last week, the measure was criticized by the president of the National Confederation of Industry (CNI), Robson Braga de Andrade, precisely during the reactivation of the National Council for Industrial Development by the president. Lula, however, avoided answering the question.