2024-11-29 17:25:00
Os Mail face an unprecedented financial crisis. The state-owned company recorded a loss of R billion in the first nine months of 2024, a value that contrasts with the Negative R$824 million of the same period in 2023. One of the factors that worsens the situation is precisely the end of tax exemption for imports of up to US$ 50a measure that became known as the “blouse tax”.
Summary of what you need to know:
- Mail accumulate record loss of R$2 billion in 2024, tripling the losses from the previous year.
- The end of tax exemption for purchases of up to US$50 drastically reduced the volume of international imports.
- The state-owned company’s revenue from international operations fell from R$3.3 billion to R$3.1 billion in nine months.
Brazilians stopped importing and Correios is impacted
The new taxation came into effect in August and has already had visible impacts. First, it is clear that Brazilians have stopped buying on international platforms such as Shein e AliExpress which resulted in a drop in 40% on imports.
As a result, the Post Office’s revenue international operations (cross border) between July and September fell from R$ 1.3 billionin 2023, to just over R$ 1 billion in the same period this year. The reduction in order volume not only decreased revenue, but also affected the company’s logistics and operational efficiency.
In practice, the measure implemented by the Lula government to increase tax revenue ended up discouraging Brazilians from making purchases on international websites. Products that were previously affordable became more expensive, and consumers began to look for alternatives in the domestic market, reducing demand for delivery services.
Now, Correios is looking for new strategies to maintain its relevance and overcome the drop in revenue, but the scenario suggests that, without significant changes, the negative numbers could persist.
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#imports #increases #Post #Office #losses
How might Correios innovate their service offerings to attract new customer segments and diversify their revenue streams?[[1](https://www.physicianassistantforum.com/articles.html/pre-pa/how-to-prepare-for-pa-school-interview/)]
## Interview Transcript
**Host:** Welcome back to the show. Joining us today to discuss the recent financial woes of Brazil’s postal service, Correios, is financial analyst, Marina Silva. Marina, thanks for being with us.
**Marina Silva:** It’s a pleasure to be here.
**Host:** Let’s get right into it. Correios just reported a record loss of R$2 billion for the first nine months of 2024. That’s a staggering increase from last year’s R$824 million loss. What are the primary drivers behind this financial crisis?
**Marina Silva:** There are several factors at play, but the end of tax exemption for imports under US$50, often referred to as the “blouse tax,” has significantly impacted Correios revenue. This exemption previously drove a lot of low-cost import volume through the postal service. Now, with those goods facing taxes, people are likely turning to other delivery options or simply buying less.
**Host:** So, essentially, the government’s policy change aimed at collecting more revenue has backfired, negatively impacting Correios?
**Marina Silva:** Precisely. It’s a classic example of unintended consequences. While the government may have gained some tax revenue, the losses incurred by Correios are substantial.
**Host:** What can Correios do to address this situation? Can they simply raise prices?
**Marina Silva:** Raising prices might seem like an obvious solution, but it could further alienate customers and exacerbate the decline in volume. Correios needs a multi-pronged approach. They need to explore cost-cutting measures, diversify their service offerings beyond traditional mail and parcel delivery, and potentially seek government support or subsidies to navigate this challenging period.
**Host:** This is certainly a complex issue with no easy solutions. Marina Silva, thank you for shedding light on this important topic.
**Marina Silva:** You’re welcome.