Brazil’s Senate has withdrawn the proposal from a bill to tax small online purchases on Tuesday, 4 June, 2024.
Senators were set to vote on a bill that would introduce a 20% import tax on international online purchases under USD 50, which the lower house of Congress had approved on Tuesday, 28 May, 2024.
Senator Rodrigo Cunha dropped the proposed 20% import tax on online purchases under USD 50.
Although the bill has mixed reactions, Senate President Rodrigo Pacheco said the bill should be debated in the Senate citing that taxing international online purchases would ensure fair competition between local and international businesses.
President Luiz Inacio Lula da Silva’s administration has aimed to balance public spending with increased tax revenue, despite his earlier opposition to the import tax proposal.
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.
