The National Congress may eliminate the $50 exemption for purchases from foreign websites like AliExpress, Shopee, and Shein. If approved, all international purchases would be subject to taxation.

Congress has the ability to conclude with an exception for purchases amounting to $50 or less.

The House’s project under consideration suggests that all imports made through the Remessa Concord program will now be taxed by the federal government at a rate determined by the Ministry of Finance. Consequently, items bought online, regardless of their low value, will no longer be exempt from taxes.

All global purchases are currently required to pay a 17% ICMS rate, regardless of their value, under the current rule. However, if this new proposal is accepted, all purchases will be subject to an import tax that could go up to 92%, even for products below $50 in value, which is currently only applicable to items over $50.

The Mover project report is in a rush and may be voted on Tuesday (7) to avoid delaying the House’s agenda. The rapporteur argues that the exemption should end based on concerns raised by retail associations regarding unfair competition for Brazilian-manufactured products that already pay taxes.

The mayor, Arthur Lira (PP-AL), supports incorporating the issue into the Mover program’s bill following discussions with different retail and industry trade groups. Retail has been urging the government to tax small imports since the launch of the Remessa Concord program, which has made the topic unpopular. As a result, business owners are now focusing on lobbying the National Congress to address the issue through legislation.

Last week, a government proposal was introduced aiming to streamline the tax system for imported goods, which would eliminate the $50 exemption. Additionally, Brazilian states are seeking to raise the ICMS from 17% to 25%, potentially increasing costs for consumers in Brazil.

It appears that the import industry in Brazil is coming to a close.