The federal government, in a run of bad luck with its tax policies, faces a perfect storm (as economists often say). The Finance Minister became the target of memes and intense criticism due to his obsession with increasing taxes and revenue at any cost, ironically nicknamed Fernando "Taxar".
The perception of the population, especially among the poorer classes, is expected to worsen with the new tax on imported products of up to US$ 50, which will come into effect next month. Even before August began, platforms like AliExpress and Shopee advanced the tax collection, popularly called the "little shirt fee," to July 27. Initially, this charge was scheduled for August 1st, as stipulated by the Ministry of Economy. A new tax will be applied to international purchases of up to US$ 50, with a rate of 20%.
The platforms justify the advance as a measure to adapt to 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 at Customs.
A new 20% rate on international purchases up to US$ 50 results in a total tax burden of 44.5%, considering the current ICMS of 17% plus the import tax (20%). This seemingly distorted calculation, where 20% + 17% results in 44.5%, is a consequence of the mathematical trick of the "inside tax," a Brazilian fiscal strategy to increase the effective rate.
With the implementation of the new tax, the price of international purchases will rise significantly. For example, a $30 blouse, which is currently taxed only with the 17% ICMS, has its price raised to $36.15. With the new import tax, the price of the blouse will rise to US$ 43.38. Considering one dollar at R$ 5.60, the prices in reais would be R$ 168.00 without taxes, R$ 202.45 with ICMS, and R$ 242.93 with ICMS and the new federal tax. Taxes add almost R$ 75.00 to the price of a $30 product, an amount that can significantly impact the budgets of the poorest families and their previously "cheap" purchases.
It is unfortunate that the government chooses yet another penalty, especially at a time of economic crisis when the lower classes are already struggling with the rising cost of living. The "little blouse rate" is another example of how the authorities 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 eases 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's time to rethink these policies and seek alternatives that truly benefit the population, not just the interests of a few.
