Retailers claim that tax exemption for foreign websites causes layoffs in Brazil

2023-07-11 17:21:00

The Institute for the Development of Retail (IDV) and the National Confederation of Shopkeepers (CNDL) demonstrated once morest the exemption of import tax in purchases of up to US$ 50 that were given by the federal government to international websites.

According to positions issued by sector representatives, national retail sees tax inequality and that this scenario might lead to the possibility of layoffs and the closing of stores across the country.

In a statement released, the CNDL stated that “the situation created is extremely serious”. It is worth mentioning that this federal government measure reduces the Import Tax rate to zero for purchases of up to US$ 50 made on foreign websites as of August.

The tax exemption will be for 60% of the companies that adapt to the “Conforming Shipment” program. The measure also provides for some rules that foreign sites are required to follow, including sending package data to the Post Office.

The IDV also announced that it contacted the Correios and the National Consumer Secretariat (Senacon), of the Ministry of Justice, to warn that the measure can be exploited by marketplaces so that counterfeit products enter Brazil.

Data from the institute indicate that Brazilian industry and commerce have a tax burden that varies from 80% to 130% in the production chain. Already the merchandise that comes from digital platforms outside the country pays 17%which would make competition unfeasible.

“It is unacceptable that the government encourages non-compliance with the payment of taxes and punishes companies that comply with their tax obligations. This ends up encouraging the closure of companies and the creation of jobs in other countries”, completed the IDV.

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