Shein and Shopee: retreat was pressured by Janja and vetoed by Lula – 04/18/2023 – Market

President Luiz Inácio Lula da Silva’s (PT) decision to resume the exemption for international remittances of up to US$50 had as a backdrop the president’s refusal to penalize the poorest layer, in addition to a dose of pressure from the first lady , Rosângela Lula da Silva, Janja.

The Lula government announced this Tuesday morning (18) the withdrawal and maintained the exemption for international remittances of up to US$ 50 from individuals to individuals.

The Minister of Finance, Fernando Haddad, stated at the time that maintaining the exemption had been a determination by President Lula. The representative met the previous night with the economic team at the Alvorada Palace.

During the meeting, Lula complained that the end of the exemption would affect the low-income and lower-middle class population, the main consumer groups of products from platforms such as Shopee and Shein.

It was also pointed out that higher income sectors can travel abroad to purchase imported products, with a quota of up to US$ 1,000.

Lula was outraged by the fact that a new measure had been announced without the approval of the Civil House of the Presidency, provoking wear and tear on the government, which would have to back down in the sequence. In a ministerial meeting, Lula had already complained about ministers divulging “genius” without consulting the Planalto.

The end of the exemption had been disclosed by the Secretary of the Federal Revenue, Robinson Barreirinhas, in an interview. The Treasury later went on to confirm the information.

The meeting took place on Lula’s first day of work after returning from an official trip to China. The representative was aware that the measure had been poorly received, but he did not have the dimension that it was one of the worst wear and tear suffered by the government.

One of the president’s thermometers had been Janja herself, who began to be invoked by users on social networks, critics of the measure, to comment on the topic. According to allies, Janja had an influence on Lula’s retreat.

She even took a position on the subject: “Friend, this article is totally wrong. I’m here on the plane with Minister Haddad who explained this taxation story to me in detail. It’s about combating tax evasion by companies and not taxing people buy,” he wrote on Twitter.

In another post, he erroneously stated that “the taxation is for companies and not for consumers”.

The Presidency’s Communications Secretariat prepared two reports, which showed the wear and tear suffered by the government because of the end of the exemption and also with Lula’s speeches referring to the war between Russia and Ukraine.

The document was presented during Lula’s meeting with the economic team. Haddad then announced that he would think of a way to review the measure, which would be announced the following day.

In this way, the government bet on putting an end to the two small crises and sources of attrition. It would stop suffering the wear and tear with the end of the exemption for international purchases, at the same time that it would take the focus away from the controversial Brazilian position on the conflict.

The government, however, avoided saying that Minister Fernando Haddad was being disauthorized and even that there was a retreat. The chief minister of Secom, Paulo Pimenta, preferred to use the word “adjustments”.

“It’s not a retreat. It’s an adjustment seeking the same result, with administrative measures without any impact on individuals. This is President Lula’s determination. President Lula doesn’t want any changes involving the type of fiscal and legal situation that guarantees this type of taxation to individuals,” Pimenta told reporters.

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.