President Lula to Announce End of 'Blusinhas' Tax on Wednesday

President Luiz Inácio Lula da Silva stated in an interview with Record TV that the end of the so called 'blusinhas' tax will be announced this Wednesday, September 26. The announcement is expected to follow a meeting with Senate President Davi Alcolumbre. The tax, a 20 percent import duty on international online purchases of up to 50 US dollars, has been suspended since May via a provisional measure. This measure must be voted on by the National Congress by September 8 to avoid losing its validity. If it expires, the tax will return shortly before the first round of elections on October 4.

Under the current suspension, no federal taxes apply to these purchases for individuals, although a state ICMS tax of 17 percent remains in effect. Purchases exceeding 50 US dollars continue to be taxed at 60 percent. The move to end the tax follows a rapprochement between Lula and Alcolumbre, which has also unlocked other government priorities such as the end of the 6x1 work schedule. One source notes that the industrial and retail sectors have criticized the measure, arguing it gives an unfair advantage to foreign industries over national production.

In the same interview, Lula discussed a conversation with US President Donald Trump, stating that the interaction has already yielded results including a scheduled meeting between their respective commerce secretaries. Lula described his communication with Trump as civilized and respectful, though he suggested that Trump's second tier staff sometimes takes unthinkable actions.