Government increases taxes and penalizes the poorest with the “taxa das blusinhas”

The federal government, in a tide of bad luck with its tax policies, faces a real perfect storm (as economists often say). The Finance Minister has become the target of memes and intense criticism due to his obsession with increasing taxes and collection at any cost, being ironically dubbed Fernando “Taxar”.

The perception of the population, especially of the poorest classes, should worsen with the new tax on imported products of up to US$ 50, which will come into force next month. Before August even begins, platforms such as AliExpress and Shopee anticipated the collection of the tax, popularly called the “rate of the” blouses, to July 27. Initially, this charge was scheduled for August 1, as stipulated by the Ministry of Economy. The new rate will focus on international purchases of up to US$ 50, with an aliquot of 20%.

The platforms justify the anticipation as a measure to suit the new taxation system, due to the time required to adjust the import declarations. This anticipation is the cause of a mismatch between the time of purchase and the declaration in Customs.

The new 20% tax on international purchases of up to US$ 50 results in a total tax burden of 44.5%, considering the current ICMS of 17% plus import tax (20%). This apparently distorted calculation, where 20% + 17% results in 44.5%, is a consequence of the mathematical artifice of the “imposed by within”, a Brazilian tax strategy to increase the effective tax rate.

With the implementation of the new rate, the price of international purchases will rise significantly. For example, a blouse of US$ 30, which is currently taxed only with the ICMS of 17%, has its price raised to US$ 36.15. With the new import rate, the price of the blouse will rise to US$ 43.38. Considering a dollar to R$ 5.60, the real prices would be R$ 168.00 without taxes, R$ 204 and the new price could be added to the R40b4.4.4 with the price.444

It is regrettable that the government opts for this penalty, especially at a time of economic crisis in which the lower classes are already struggling with the increase in the cost of living. The “axa das blusinhas”, as an example of how governments are disconnected from the reality of the population. Instead of seeking solutions that encourage economic growth and job creation, they prefer to increase taxes indiscriminately, harming the most vulnerable.

Brazil urgently needs a fair tax reform that relieves the burden on the poorest and encourages production and consumption. The current government, however, seems to be more concerned with filling the public coffers at the expense of the worker.It is time to rethink these policies and seek alternatives that really benefit the population, and not just the interests of the few.