Brazil’s lower house of Congress approved a bill that introduces 20% import tax on international online purchases under USD 50 on Tuesday, 28 May, 2024.

The bill must be voted in the Senate before it can come into effect.

This new import tax rate for purchases costing USD 50, or less, was passed after talks between lawmakers and the administration of leftist President Luiz Inacio Lula da Silva, who previously opposed the tax proposal.

Previously, an earlier version of the bill proposed to increase the tax on online orders to 60%.

In 2023, Lula’s administration attempted to introduce an online sales tax supported by local retailers concerned about the growing influence of Asian e-commerce giants like AliExpress and Shein in Brazil. However, Lula’s government abandoned the initiative following backlash from online shoppers.