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What Will Be the Impact of the "t-shirts Tax" on the Brazilian Industrial Properties Market?

  • With Senate approval, the "t-shirts tax" only awaits presidential sanction
Joseph C. Tsai, chairman of the Alibaba Group, owner of AliExpress, which positions itself against taxation
Joseph C. Tsai, chairman of the Alibaba Group, owner of AliExpress, which positions itself against taxation
By: SiiLA News
06/19/2024

It is now up to the president. On the 5th of the last month, the Senate approved the taxation of international purchases up to $50, imposing a 20% tax, and it awaits President Lula's sanction or veto. The opposition aligned with the government and national retailers, while Chinese companies and a segment of the population expressed opposition.

In April 2023, the government announced it would end tax exemptions on purchases below $50, citing the need to combat smuggling and the misuse of personal accounts to evade import taxes. After negative public reaction on social media, President Lula backtracked and asked Finance Minister Fernando Haddad's team to reassess the situation.

The solution found was the creation of the Remessa Conforme program, which maintained the import tax exemption on purchases below $50 but imposed a 17% ICMS tax. This was positively received.

Now, in 2024, the discussion about the so-called "t-shirts tax" has resurfaced, driven by pressure from national retailers who argue that the tax is necessary to combat unfair competition. The proposal passed through the Chamber, the Senate, and now awaits approval or veto from President Lula.

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