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Government report suggests maintaining tax exemption on purchases under US$50

A report from the Ministry of Finance recommended that the government maintain the import tax exemption for purchases below US$50 (R$245 at current exchange rates) on foreign websites. The idea of ​​the department is to better evaluate the impact of Remessa Conform on public accounts.

The information was revealed yesterday (25) by Globo. Remessa Conformo came into force in August last year and determined the charging of only a 17% ICMS rate on purchases below US$50. Purchases above this value are charged 60% import tax and a further 17% of ICMS.

According to the Tax Authorities, between October and November 2023, of 30.2 million orders coming from abroad, 23.6 million were within the rules of Remessa Conformo. In other words, 83.78% of imports met the program's standards.

Technicians from the Ministry of Finance suggest extending exemption from import tax on purchases below 50 dollars (Image: diegograndi/Getty Images)

“It is proposed to maintain the rate currently in force for remittances below US$50 supported by the PRC (Conform Remittance program), so that the effects of the strategy adopted in relation to tax policy for international remittances can be better assessed”, says an excerpt from the report by technicians from the Ministry of Finance.

Report goes against government and retailers

The technical note from the economic department is important because it assesses the return on the collection of import taxes even on purchases below US$50. On more than one occasion, members of the federal government said that Remessa According was temporary and that the tax rules would be reevaluated.

In November last year, vice-president Geraldo Alckmin (PSB) spoke about the subject during an event with representatives of commerce and services. “ICMS taxation has already started and the next step is import tax even for those below US$50,” he said.

The return of import tax even for lower value purchases is even a demand from national retailers. Representatives of large Brazilian companies complain that Remessa Segundo is favoring foreign players such as Shopee, Shein and AliExpress.

ChinaShopee, Shein, AliExpress, Mercado Livre, Amazon and other companies are already accredited with Remessa Compliance (Image: adventtr/Getty Images)

Last week, the National Confederation of Industry (CNI) and the National Confederation of Commerce in Goods, Services and Tourism (CNC) went to the Federal Supreme Court (STF) to complain about Conforming Shipping.

“This tax exemption for goods worth up to US$50, in the commercial environment and routinely, causes distortion in the market and creates unfair competition. Furthermore, it does not protect the internal market, which has constitutional protection”, argued the Legal Director of the CNI, Cássio Borges.

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