Brazil's House of Representatives passes new tax bill to tax goods under $50

It is learned that according to foreign media reports, the Brazilian House of Representatives approved the "Mover bill" on June 11, introducing a new tax policy, namely imposing a so-called "shirt tax" on imported goods with a value of no more than US$50 (including shipping and other fees), ending the import duty-free treatment for such goods.

On top of that, shoppers must now pay the state-levied ICMS tax, which ranges from 17% to 19%, under a compliant remittance program set up by the federal government last year. In Brazil, the actual tax paid is often higher than the legal amount, and a 17% tax could be calculated as 20.48%.

Now, the new tax policy will affect well-known e-commerce platforms including Shopee and Shein . According to the Mover bill, for cheaper products, the import tax is 20% of the product value. For goods above $50, the proposed tax rate is 60%, while an intermediate range of $50-3,000 is set up, with a tax reduction of $20. However, before the bill is officially passed into law, it still needs to be approved by President Lula (PT).

The decision to remove the import tax exemption has sparked public controversy, with many worried that it will affect the purchasing behavior of a large number of shoppers and could cause political damage in an election year. Brazil's tax policy adjustments will pose new challenges to both consumers and e-commerce companies, and require further attention and discussion.

Author✎ Summer/
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