After giving up on import tax, Brazilian minister announces a “digital tax” on e-commerce

By Diógenes Freire

Two days after giving in to pressure and giving up on taxing imports of products worth up to US$50, the Minister of Finance, Fernando Haddad, announced what seems to be the same measure, just with a different name.

Haddad said Lula’s government would copy other countries and adopt a “digital tax” for e-commerce on purchases of up to US$50.

The announcement was made this Thursday (20).

Even the justification is the same as the one used before.

Haddad said that the tax would be charged to the company and not the consumer but did not explain how he would prevent companies from passing the charge on to consumers.

“To avoid problems, we will follow the example of developed countries, which is what they call abroad a ‘digital tax‘.”

“In other words, when the consumer buys, he is exempt from any tax collection.”

“The company will have done the tax without passing any additional cost to the consumer,” he said.

Haddad did not inform the tax rate or clarify how the government would avoid eventual fraud.

“So when you buy on the platform, you will know you will receive a regular, legal product at home.”

“Even if you receive a product with problems, you will have someone to complain to, so everything will be legal,” he added.

Last week, the announcement of the taxation on purchases of up to US$50 generated attrition to the government and unleashed an avalanche of criticism on social networks, mainly against the intervention of the first lady, Janja, and the lies of the chief minister of the Social Communication Secretariat, Paulo Pimenta.

With information from Brasil Sem Medo