The "t-shirt tax" is getting closer to becoming a reality in Brazil. Starting in August, there should be taxation on small international orders of up to US$ 50.00. The Import Tax, established at a rate of 20% on such operations will directly impact foreign B2C sales sites.
With the imminent enforcement of taxation, it is important to try to understand all the vectors and impacts of this measure, especially regarding competitive elements, customs officers and consumers.
Reflections of taxation
It is difficult to anticipate the effects of taxing small shipments on the market. However, without a doubt, the revocation of the import tax exemption will increase the costs of operations and the additional cost will be passed on to consumers. Adding to the incidence of the Tax on Circulation of Goods and Services (ICMS), the approximate tax burden will be 40% — amount that is not negligible —, compatible with the current tax burden on the consumption of a large part of the products and higher than the reference rate of the Tax on Goods and Services (IBS) and the Social Contribution on Operations with Goods and Services (CBS) combined.
E-commerce and logistics
With the change in taxation, the main concern — that may be being undersized — is in logistics and customs processes in Brazil. This is because there is a possibility of an increase in operational costs for e-commerce companies. The current exemption policy, call ofMinimisthere is no way to exempt any sector, but rather for a customs issue, since the tax collected is usually lower than the cost of customs control to ensure collection. Most countries exempt this type of operation, although the advancement of operationscross borderthe e-commerce is causing some countries to revisit their policies.
Positive or negative
The taxation of international purchases is a complex topic that involves economic aspects, social and political. Taxation is positive in competitive terms, because it strengthens the local industry against foreign competition. That is to say, when taxing imported products, the government can protect local industries from unfair competition from cheaper foreign products, promoting internal economic development.
However, there are customs and consumer collateral that cannot be overlooked. Taxation can result in price increases for consumers, who end up paying more for products that could be cheaper if they were imported without the incidence of Import Tax. There may also be a reduction in the variety of products available in the market, if the increase in costs resulting from the burden is sufficient to actually inhibit consumption through foreign platforms.
Finally, the decision to tax international purchases must consider a balance between protecting the national economy and avoiding significant negative impacts on local consumers and businesses. Well-planned policies and compensatory measures can help mitigate harmful effects, while enhancing the economic benefits.
