End of Imports Increases Correios Losses

End of Imports Increases Correios Losses

2024-11-29 17:25:00
End of Imports Increases Correios Losses

Os Mail face an unprecedented financial crisis. The state-owned company recorded a loss of R$2 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:

  1. Mail accumulate record loss of R$2 billion in 2024, tripling the losses from the previous year.
  2. The end of tax exemption for purchases of up to US$50 drastically reduced the volume of international imports.
  3. 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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What are some potential solutions being discussed to address the Mail’s financial ⁢crisis?

## ‍Mail‍ in Crisis: ⁤A ⁢Closer Look

**Interviewer:** Joining us today is [Guest Name], expert in ​logistics and postal services. [Guest Name], thanks for being here.

**Guest:** It’s ⁢a pleasure⁣ to ​be here.

**Interviewer:** We’re hearing alarming news about the ⁢financial state of the ​Mail.‍ Reports indicate a record loss of R$2 billion in the first nine months of ⁤2024. Can you shed some light on this situation?

**Guest:** Absolutely. The Mail is facing a perfect storm of challenges right now. The end of the tax exemption ​for imports under US$50, often‌ called the “blouse tax,” has had ‌a significant impact. ‍This means‌ increased costs​ for the Mail handling those packages.

**Interviewer:** ‍ So, essentially, the Mail is absorbing the cost that consumers used to pay⁤ in taxes?

**Guest:** Precisely.⁣ This, coupled with rising operational costs and⁣ increasing competition‌ from private delivery services,⁤ has ⁢created a difficult situation.

**Interviewer:** Are there any solutions on the⁢ horizon?

**Guest:** There are certainly ongoing discussions ‌about ‍restructuring and⁣ finding new revenue ⁢streams. The Mail​ needs‍ to adapt to the changing market and⁣ explore innovative solutions to remain viable.

**Interviewer:** Thank you, [Guest Name], for ⁤offering ​your insights into this critical issue. It’s clear ‍that the⁣ future of the Mail hangs in the⁢ balance.

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