Brazil Congress Upholds Lula Order Scrapping Import Taxes on Foreign Purchases Up to $50

  • Brazil’s Congress upheld President Lula’s order scrapping import taxes on foreign purchases up to $50.
  • The measure was signed in May ahead of October’s election, when Lula will seek another term.
  • An April AtlasIntel/Bloomberg poll found 60% of respondents opposed the taxation.

Brazil’s Congress voted to uphold an executive order by President Luiz Inacio Lula da Silva that eliminated federal import taxes on foreign purchases worth up to $50. Lula signed the order in May, reversing a levy that had faced strong public opposition before October’s election, when he will seek a fourth non-consecutive term. The measure is intended to reduce costs for goods bought through cross-border e-commerce platforms widely used by lower-income Brazilians. It was issued as a provisional measure, requiring Congress to decide by September 8, within 120 days, whether to maintain or reject it. Government officials had previously defended the tax as a way to support Brazilian industry against Alibaba Group’s AliExpress, Sea Ltd-owned Shopee and Shein. An AtlasIntel/Bloomberg poll in April found that 60% of respondents opposed the taxation.

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