Exemption for imports of up to US$ 50 generates a loss of R$ 35 billion – 07/24/2023 – Market

The import tax exemption for products worth up to US$ 50 (R$ 237) will generate a loss of revenue of around R$ 35 billion by 2027, according to an estimate by the Federal Revenue Service.

The projection, which was released by Valor and confirmed by Sheetis contained in a technical note from Cetad (Tax and Customs Studies Center) of the Treasury.

According to the document, the analysis considers that approximately 80% of the total volume of postal and express shipments, made by legal entities, will be carried out in line with the compliance program, within the limit of US$ 50 and meeting the criteria for the application of a zero rate.

“Considering the legislation currently in force as a reference, we can point out that the changes now analyzed imply a loss of potential collection corresponding to the volume of operations subject to the proposed zero rate”, says the text.

According to the calculations of the technical area of ​​Revenue, the measure would have an estimated cost of approximately R$ 2.9 billion in 2023. The loss of potential revenue for this year was calculated based on the period from July to December, but the Remessa Segundo program will effectively start on August 1st.

For next year, the Tax Authorities expect to collect R$ 6.5 billion less with the change. The loss reaches BRL 7.4 billion in 2025, BRL 8.5 billion in 2026 and BRL 9.7 billion in 2027, according to the agency.

“Based on the potentially taxable customs value in reais, the current import tax rate (60%) was applied to arrive at the estimates of the impact of collection presented in this note”, says the Cedat document.

In an ordinance released by the Ministry of Finance on June 30, it was established that there will be no charge of import tax for purchases of up to US$ 50, or equivalent in another currency, destined for individuals, provided that the e-commerce company, national or foreign, is part of the Conforming Remittance program.

In these cases, the import tax will be exempt even if the remittance of up to US$ 50 has been sent from a legal entity to an individual. According to the new rules, the company –in order to benefit– must also collect state taxes on imports.

E-commerce platforms that meet certain criteria established by Consignment Remittance will receive differentiated treatment, which promises to facilitate and optimize the flow of clearance of international shipments.

The exemption from federal tax on these remittances is the Treasury’s trump card in getting foreign companies to join the program. The theme gained prominence after Asian ecommerce platforms, such as Shopee, Shein and Aliexpress, were accused by members of the government and by Brazilian representatives of the retail sector of practicing “digital smuggling” and tax evasion.

In April, the Treasury even announced that it would start taxing international remittances of up to US$ 50 between individuals because companies were circumventing the Tax Authorities. Faced with the negative repercussions among consumers with the possibility of an increase in final prices, the government withdrew.

At the time, Minister Fernando Haddad (Finance) said that President Luiz Inácio Lula da Silva (PT) –under pressure from First Lady Rosângela Lula da Silva, Janja—asked the economic team to give up the proposal and seek an administrative solution to the problem.

Representatives of national companies criticize the tax exemption granted to foreign companies on purchases below US$ 50, fearing that the measure will affect the competitiveness of the domestic market. In a note, in July, the IDV (Institute for Retail Development) expressed concern about a possible “wave of layoffs and store closings”.