Brazil’s Congress Races to Kill the ‘Blusinhas Tax’ on Cheap Online Shopping
BRAZIL · TAX · CONGRESS
Key Facts
—What happened: Brazil’s Congress installed the joint committee that will decide the fate of the “blusinhas tax” on 28 August 2026.
—What the tax is: A 20 percent import tax on online purchases from abroad worth up to US$50, in force since August 2024.
—Who runs it: Senator Leila Barros is the rapporteur, and deputy Reginaldo Lopes chairs the committee.
—The catch: If both chambers do not approve the repeal by 8 September, the 20 percent tax automatically returns.
—Who loses: Brazilian industry, which collected protection worth R$5 billion (US$970 million) in 2025 tax revenue, opposes the repeal.
—What comes next: The rapporteur’s report goes to a committee vote on 1 September, then to both chamber floors.
Brazil’s Congress has eleven days to bury one of the country’s most hated taxes. The joint committee on the end of the “blusinhas tax” was installed on Friday, with senator Leila Barros as rapporteur and a hard deadline of 8 September.
The committee that met this morning
The joint committee for Provisional Measure 1,357 of 2026 held its working session on Friday 28 August. A joint committee mixes senators and federal deputies, and Brazil uses one for every provisional measure.
A provisional measure, known in Brazil as an MP, is a decree with force of law. It takes effect immediately but dies unless Congress approves it, in this case by 8 September.
The rapporteur is senator Leila Barros of the PDT party, representing the Federal District. Foreign readers may know her better as Leila do Vôlei, an Olympic volleyball medallist.
The chair is deputy Reginaldo Lopes of President Lula’s Workers’ Party. Both face re-election in October, and both have reasons to want the blusinhas tax dead.
The rapporteur already has 112 proposed amendments on her desk. Her report is scheduled for a committee vote on Tuesday 1 September.
What the blusinhas tax actually is
The nickname means roughly “the little-blouse tax”. It is a 20 percent federal import tax on international online purchases worth up to US$50.
It applies to platforms inside the government’s Remessa Conforme compliance program. That means Shein, Shopee, AliExpress and their rivals, the stores where Brazil buys its cheap clothes.
The tax was created by Law 14,902 of 2024 and has applied since August that year. President Luiz Inácio Lula da Silva signed it, despite reportedly calling the idea irrational.
In May 2026 Lula reversed course. His government issued the provisional measure that cut the rate to zero, eyeing the October election.
Purchases between US$50 and US$3,000 still pay 60 percent. State sales tax, the ICMS, also continues to apply whatever Congress decides.
Why the rush, and why now
The calendar is doing the negotiating. The provisional measure lapses on 8 September, weeks before the first round of the election on 4 October.
Congress first installed the committee on 12 August, but the session collapsed. Leaders could not agree on who would chair it and who would report.
The deadlock broke over lunch. On Wednesday Lula hosted the Chamber speaker, Hugo Motta, and the Senate president, Davi Alcolumbre, and the names were settled.
The government then secured a voting window. Congress reserved 31 August to 4 September as an “extra effort” week, the last voting days before the campaign takes over.
The politics are unusual. The opposition calls the repeal an electoral stunt dressed up as consumer relief.
Yet its own leader in the Chamber has said killing the blusinhas tax would be a great victory. Every deputy faces voters in October, and few want the tax’s return on their record.
Industry is not going quietly
Brazilian manufacturers fought for the tax in 2024 and are fighting to keep it now. The National Confederation of Industry has taken the provisional measure to the Supreme Court.
Its argument is competitive fairness. Brazilian factories pay full domestic taxes, high interest rates and labour costs, while foreign platforms ship in duty-free.
Industry groups warn the repeal threatens tens of thousands of textile and retail jobs. We reported their figure of 109,000 jobs at risk earlier this week.
The treasury has its own quiet stake. The tax raised R$5 billion (US$970 million) in 2025, up from R$2.88 billion (US$559 million) in 2024.
Revenue kept climbing this year, reaching R$1.78 billion (US$345 million) from January to April alone. Zeroing the rate zeroes that stream as well.
The voters have already decided
If the measure passes, it will be because the public made it untouchable. A March survey by Atlas and Bloomberg found 62 percent of Brazilians consider the tax the government’s biggest mistake.
Leila Barros framed her task in exactly those terms. Six in ten Brazilians, she said, have bought something from the affected platforms, mostly people on lower incomes.
The volume behind that sentiment is staggering. Even after the tax arrived, Brazilians imported 165.7 million parcels in 2025, down from 187.1 million the year before.
For a foreigner, the parallel is the American debate over cheap Chinese e-commerce. Brazil simply got there first, and is now first to retreat.
What to watch in the next eleven days
The first date is 1 September, when the committee votes on the rapporteur’s text. The amendments are the wild card, because any change can slow the path to the floor.
The second is the “extra effort” week. Both the Chamber and the Senate must approve the measure by 8 September, or the 20 percent rate revives automatically.
The third is the Supreme Court. Industry’s constitutional challenge could restore the tax by injunction even if Congress kills it.
The retreat will be watched beyond Brazil. Other countries weighing taxes on cheap Chinese parcels now have a test case running in reverse.
Frequently Asked Questions
What is Brazil’s “blusinhas tax”?
It is a 20 percent federal import tax on online purchases from abroad worth up to US$50. Created by Law 14,902 of 2024, it hits platforms like Shein, Shopee and AliExpress.
What did Brazil’s Congress do on 28 August 2026?
It installed the joint committee that will review the provisional measure ending the tax. Senator Leila Barros was named rapporteur and deputy Reginaldo Lopes chairman.
Is the blusinhas tax already abolished?
The rate is zero for now, under a provisional measure issued in May 2026. If Congress does not approve it by 8 September, the 20 percent tax returns automatically.
Who is Leila Barros?
A senator for the Federal District from the PDT party, allied with the Lula government. Before politics she was an Olympic volleyball star, known in Brazil as Leila do Vôlei.
Does ending the tax make imports fully tax-free?
No. State sales tax still applies, and purchases between US$50 and US$3,000 keep a 60 percent federal rate. Only the up-to-US$50 band goes to zero.
Connected Coverage
This updates our report on industry’s warning that repeal threatens 109,000 jobs. Earlier we covered Lula’s decision to end the tax and the September vote timetable.
Sources: Congresso em Foco (28 August 2026), CNN Brasil (28 August 2026), Poder360, Correio Braziliense, Estadão, Valor Econômico. Exchange rate: R$5.15 per US$1 (28 August 2026).
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