Senators in Brazil drop proposal to tax online low-cost orders

BRASILIA, – A proposal to tax international online purchases below $50 was removed from a larger bill before an expected vote on Tuesday in the Brazilian Senate and should be discussed separately, said the senator responsible for the bill.

Last week, the lower house of parliament approved a bill that included incentives to encourage automakers to adopt sustainable practices. The 20% import tax was removed.

Rodrigo Cunha is the senator in charge of this bill. He argued that now was “not an ideal time” to vote and called on lawmakers to vote separately.

The government of President Luiz inacio Lula da So has tried to balance the public budget with increased tax revenues, despite his opposition to the proposal for an import tax. Lula da Silva’s government tried to implement an online sales tax last year. Local retailers supported it, as there are more Asian ecommerce giants operating in Brazil. However, he abandoned the plan after a strong backlash.

The proposal is being met with a strong consumer backlash. It affects global online retail companies such as Alibaba’s AliExpress and Sea’s Shopee, as well fashion retailer Shein. These have become very prominent in Brazil in recent years.

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