Return of exemption is not ‘retreat’, but ‘adjustment’, says Pimenta – 04/18/2023 – Market

The Minister of the Social Communication Secretariat of the Presidency, Paulo Pimenta, said this Tuesday (18th) that President Luiz Inácio Lula da Silva (PT) left the decision for the government to reverse the end of the exemption for international remittances of up to US $50 between individuals.

The Treasury had announced that it would start taxing these shipments because companies were circumventing the Tax Authorities, dividing orders into several packages, falsely sent as if they had individual senders. Retail sectors attribute this practice to ecommerce platforms such as Shopee, Shein and Aliexpress – the companies deny it.

Pimenta also said that the government does not consider that there has been a “retreat” in the measure, but rather an “adjustment”, which, according to him, will also achieve the objective of reducing tax evasion on international purchases.

Despite the definition given by Pimenta, the decision not to end the exemption came a day after the secretary of the Federal Revenue, Robinson Barreirinhas, said that the government would not go back.

“We are not going back because the law is very clear. There is a tax today and it is not being implemented. The Federal Revenue is already taking measures in relation to the implementation of this current legislation and the proposals that we are indicating and should be announced very soon refer to instrumentalizing the Federal Revenue to enforce the law that already exists today”, said Barreirinhas.

The announcement that the government would no longer end the import tax exemption for orders of up to US$ 50 (R$ 247) sent between individuals was made this Tuesday morning (18), by the Minister of Finance, Fernando Haddad , immediate chief of Barreirinhas.

In an interview with journalists, Haddad said that President Luiz Inácio Lula da Silva (PT) asked the economic team to give up the proposal and seek an administrative solution to the problem.

“The president asked us to try to solve this administratively, to use the inspection power of the Federal Revenue without the need to change the current rule. It was generating confusion that this could harm people who, in good faith, receive packages from abroad until this level, which is an old rule,” he said.

The announcement that the government would start charging tax on these remittances had triggered a wave of criticism on social media and political wear and tear. Even first lady Rosângela Lula da Silva, known as Janja, entered the story commenting erroneously that “taxation is for companies and not for consumers”.

Lula’s order for the taxation to be abandoned was given in a meeting with the economic team on Monday night (17), at the Alvorada Palace.

“It’s not a retreat. It’s an adjustment seeking the same result, with administrative measures without any reflection on individuals. That is President Lula’s determination. President Lula does not want any changes that involve the type of fiscal and legal situation guarantees this type of taxation to individuals”, he added.

According to Pimenta, Lula asked the Revenue Service to “seek mechanisms to increase inspection and control in electronic commerce involving legal entities.” Among the possible measures would be the obligation for senders who are legal entities abroad to have their identification on the packaging: “A logo from the seller’s website, the CNPJ, the CPF of the person selling, as is the case in many countries, under penalty of returning mail from these sellers”.

“We will not back down one millimeter [na tentativa de combater a sonegação], on the contrary. We are going to increase even more our determination, to increase the inspection and control mechanisms in relation to the legal entity that tries to circumvent the tax authorities, but we are not going to adopt any measure that has consequences for the relationship that is established between individuals”, said the minister.

Pimenta also denied that Lula’s determination means that he would be disavowing Haddad and his team. “On the contrary [não desautoriza o Haddad]. I think that through dialogue, through debate, we find the adjustment of government policies.”