2023-11-06 04:06:00
The government can start charge import tax for purchases below US$50 until the end of this year. The information was shared by representatives of the textile industry following a meeting with the Minister of Finance, Fernando Haddad.
For these people, the return of federal taxation should “provide equality” so that national companies can compete with Chinese retailers such as AliExpress, Shein and Shopee.
Currently, purchases below US$50 (~R$250) do not pay the 60% federal tax, but there is a 17% ICMS charge. However, for the textile industry, this Conformal Shipping rule is a big problem.
This is because most clothing purchases cost between R$140 and R$150, meaning they only pay ICMS. In practice, buying clothes from the Chinese still remains advantageous.
Commenting on the matter with Estadão, a person who knows the subject said that Remessa Compliance is serving the government to prove that the national industry is suffering from “dumping” in relation to imported products.
The definition of “dumping” is when a retailer exports its products to Brazil at a price (export price) lower than what is charged in its domestic market (normal value in China).
Another measure that may also be considered by the government is a agreement with states to increase ICMS from 17% to 25%meaning that the rate for products below US$50 might be around 80%.
The textile industry says that this is the tax burden that national companies pay, and the sector employs around 1.7 million people within the 200,000 local companies.
For now, the Ministry of Finance does not comment on the matter. Even so, the forecast is that a rate between 20% and 28% will be charged for purchases below US$50 as a way of meeting the national retail lobby.
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