Alckmin Defends Import Tax on Small Packages as Lula Calls It a Mistake
Key Facts
— — Vice President Geraldo Alckmin publicly defended the 20% import tax on international purchases under US$50, saying it remains necessary because imported goods still pay less than domestically produced ones even with the levy
— — His position directly contradicts President Lula, who called the tax “unnecessary” in a media interview, and newly appointed political coordination minister José Guimarães, who said revoking it would be “a good idea”
— — An AtlasIntel poll found 62% of Brazilians consider the tax a government mistake, driving the political wing of the Planalto to push for revocation via executive decree before October’s election
The Rio Times, the Latin American financial news outlet, reports that Brazil’s government has split openly over the future of its controversial Brazil import tax on Shein and other cross-border e-commerce platforms. Acting President Geraldo Alckmin on Wednesday defended the 20% levy on international purchases under US$50 — known popularly as the “taxa das blusinhas” — just hours after the president’s own political coordinator called for its abolition.
The tax, enacted in August 2024 under Law 14,902, applies a 20% federal import duty on top of the existing 17% state ICMS on all cross-border purchases under US$50 from platforms including Shein, Shopee, AliExpress, and Temu. The combined effective rate approaches 40% — still below the roughly 50% burden on domestically manufactured goods, as Alckmin pointedly noted.
Alckmin’s Case: Jobs and the Brazil Import Tax Math
Speaking at a press conference at the Planalto Palace on April 16, Alckmin framed the tax as a matter of industrial survival. Even with the 20% import duty plus state ICMS, he argued, the total burden on imported goods remains below 40%, compared to nearly 50% for Brazilian producers. Removing it would widen the gap further and threaten domestic manufacturing jobs.
Alckmin denied that any formal decision had been taken on revocation. His emphasis on employment protection aligns with a manifesto signed by 48 industry associations arguing that Brazilian retail alone plans to invest R$100 billion domestically in 2026 — investment that would be at risk if the tax disappears. The associations noted that Shein and other international platforms earned approximately R$40 billion in Brazilian sales between 2023 and 2025 while investing almost nothing locally.
Lula’s Reversal: Election Math Overrides Trade Policy
President Lula, speaking to Brazilian media outlets Brasil 247, Revista Fórum, and DCM on April 14, called the tax “unnecessary” and acknowledged its political cost. He framed it as a burden on low-income families who are the primary users of cross-border e-commerce platforms. The remarks marked a sharp reversal from 2024, when his own administration negotiated the tax’s passage through Congress.
José Guimarães, the newly appointed minister of institutional relations responsible for congressional coordination, reinforced the message at his first press conference. He described the tax as “one of the strongest elements of political erosion” for the Lula government and offered a personal endorsement of revocation. The political wing of the Planalto, led by communications minister Sidônio Palmeira and Casa Civil minister Rui Costa, reportedly considers maintaining the tax “political suicide” in an election year.
The Numbers Behind the Fight
The polling data explains the urgency. An AtlasIntel survey conducted in partnership with Bloomberg found that 62% of Brazilians consider the taxa das blusinhas a government error, while only 30% view it as correct policy. Imports via the Remessa Conforme program dropped approximately 43% immediately after the tax took effect in August 2024, suggesting significant consumer pushback.
The revenue stakes are material. The tax generated approximately R$5 billion in federal revenue in 2025, according to government estimates. An LCA Consultoria study commissioned by cross-border platforms that initially fought the measure concluded that the levy had not meaningfully boosted domestic employment in retail or textiles, while reducing consumer access to affordable goods — disproportionately affecting lower-income households.
Why This Matters Beyond Brazil
Brazil’s dilemma is not unique. Across Latin America, governments have imposed or are considering taxes on low-value cross-border e-commerce. Ecuador introduced a US$20 charge on packages under 400 dollars, and Uruguay plans VAT on foreign e-commerce purchases.
The irony is that Washington included Brazil’s taxa das blusinhas in its Section 301 trade investigation as a potential “commercial barrier” — meaning Brazil faces pressure from both sides. Domestic consumers want the tax gone, while the US trade representative considers it protectionist. With six months until October’s vote, the mechanism under discussion is a Medida Provisória — an executive decree with immediate force that would not require congressional approval.
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This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief