Taxation causes imports of purchases to fall by 43%, says LCA

A study by the consultancy indicates a monthly drop of US$176 million in international purchases that are taxed under the Remessa Compliance program

The 20% Import Tax on international purchases of up to US$50 resulted in a monthly drop of up to 43% of products that arrived in Brazil through , a Federal Revenue program that established different import rules for e-commerce companies. In terms of values, the decrease per month was up to US$ 176 million (R$ 945.8 million at current prices).

The data is being studied by , which was commissioned by the (Brazilian Association of Mobility and Technology). Here is the (PDF – 537 kB) of the survey published this Tuesday (28.Oct.2025).

The minimum taxation (rate of 20%) of Import Tax on purchases of up to US$50 made in e-commerce international agreement began in 2024. The initiative was included in the Move Law as a “jabuti” –jargon that refers to a measure inserted in a PL that is unrelated to the topic. Here is it (PDF – 471 kB).

According to the LCA, there was a drop of US$122 million in monthly imports of consumer goods once the tax was introduced. The value reached US$176 million in June 2025.

Copyright

Reproduction/LCA Consultores

There was an immediate drop of 43% in monthly imports of consumer goods via remittance as

Products valued from US$50.01 to US$3,000 are taxed at 60%, with a flat deduction of US$20 from the total tax amount.

HIGHEST RATE IN LATIN AMERICA

Brazil has the highest tax burden among the main economies in Latin America, according to data from the Global Express Association. Here is the list below:

“The most efficient model is the one adopted by developed and middle-income countries: the exemption from import tax for small shipments, combined with the collection of consumption tax equally in relation to national production”declared Eric Brasil, director of LCA Consultores.

IMPACT ON POOR PEOPLE

Among classes C, D and E, the number of consumers who gave up buying on shopping platforms e-commerce because of the increase in the final price with taxes it rose from 35% in August 2024 to 45% in April 2025.

Around 70% of all revenue from the “blouse tax” – as the tax is informally known – comes from classes C, D and E. The data is in the Plano CDE survey.

DISCOUNT IN COLLECTION

In addition to the federal tax, there is a 17% to 20% ICMS (Tax on Circulation of Goods and Services) charge on international purchases of up to US$3,000 that are imports made under the Simplified Taxation Regime.

While federal revenue increased by R$ 265 million per month (0.08% of the total), the States lost R$ 258 million in monthly revenue via taxes due to the drop in the volume of imports. “In net terms, there is additional revenue of only R$7 million per month”states an excerpt from the survey.

CREATION OF PIFIA JOBS

In the 12 months following the implementation of the Import Tax, the LCA states that the increase in job creation for benefited sectors (retail trade and national industry) was 0.97%. It was below the national average, an increase of 3.04%. The consultancy took into account data from the Ministry of Labor and Employment.

Brazilian retail due to taxation. The (Federation of Industries of the State of São Paulo) also asked the federal government to charge tax on “purchases” so as not to harm the national industry.

CNI

A survey of the (National Confederation of Industry) on Monday (Oct 27) stated that 38% of consumers have already given up on making a purchase on international websites or apps because of the import tax. In May 2024, it was 13%.

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