President Lula Sanctions End of Federal Tax on International Purchases Under US$ 50

President Luiz Inácio Lula da Silva sanctioned legislation on Thursday, September 10, eliminating the federal import tax on international online purchases of up to US$ 50. This measure, known as the "blusinhas tax," removes the 20 percent import tariff on these low value shipments. While federal taxes are eliminated for these items, purchases remain subject to the ICMS, a state level tax that varies by region.

The legislation follows an agreement between the presidents of the Chamber of Deputies and the Senate. In addition to the exemption for small purchases, the measure includes provisions for goods valued between US$ 50.01 and US$ 3,000. One report notes a reduction in combined federal and state taxes from 60 percent to 30 percent for these items, while another specifies that the 60 percent import tax remains but allows for a US$ 30 deduction for purchases under the Remessa Conforme program. The Ministry of Finance is also authorized to establish constant or progressive rates for goods up to US$ 3,000.

President Lula described the move as a reparation for citizens who cannot afford luxury goods or international travel. He dismissed claims from business leaders that the exemption would harm national industry or cause unemployment, calling such concerns insignificant. Additionally, the text provides tax exemptions for the export of medications for rare and neglected diseases, as well as medications approved by Anvisa that are not available in Brazil.