Brazil Ends Its ‘Blusinhas Tax’ on Cheap Imports

BRAZIL · ECONOMY

Brazil’s Congress just made permanent the end of its hated tax on cheap parcels bought from abroad.

Brazil’s Congress made a big tax break permanent this week. Shoppers who buy cheap goods from overseas sites will keep paying much less.

The vote ends years of uncertainty around the so-called “blusinhas tax.” It targeted inexpensive clothes and gadgets from sites like Shein and AliExpress.

From Emergency Decree to Permanent Law

Brazil first imposed a flat 20 percent tax on parcels under US$50 back in 2024. Shoppers and small sellers complained it made cheap imports too expensive.

President Lula suspended that 20 percent floor in May through an emergency decree. This week, lawmakers chose to make the change permanent instead of letting the old tax return.

Congress faced a hard deadline of Tuesday, September 8. Without action, the old 20 percent tax would have kicked back in automatically.

Senator Leila Barros led the Senate committee behind the bill. The former Olympic volleyball medalist pushed it through fast, racing against the clock.

The bill now heads to President Lula’s desk for a signature. He originally proposed the tax break himself.

Most analysts expect him to sign it into permanent law.

Cheaper Parcels, Pricier Big-Ticket Orders

Finance Ministry officials can now set the small-parcel rate anywhere from zero to 30 percent. That flexible range replaces the old fixed 20 percent charge.

The ministry must also review that rate every six months. Officials will weigh factors like shipping method and platform compliance.

Bigger orders worth US$50 to US$3,000 still face a steep 60 percent tax. Brazil’s state sales tax applies on top of that federal rate.

Parcel imports have already surged since the tax break began in May. Brazil received 28.36 million packages in June 2026, up 118 percent from a year earlier.

Domestic retail and industry groups warn the change could cost about 109,000 jobs nationwide. They say local shops simply cannot compete with untaxed imports.

The old fixed tax also cut into overall trade volumes. Brazil received 165.7 million parcels in 2025, down from 187.1 million the year before.

Divided Reaction at Home

The tax raised real money for Brazil’s government. It brought in R$5 billion (about US$970 million) in revenue during 2025 alone.

Brazil’s National Confederation of Industry still opposes the change. It has asked the Supreme Court to strike down the tax break instead.

Many Brazilians welcome the change, though. A March survey by Atlas Intel and Bloomberg found 62 percent called the old tax the government’s biggest mistake.

About 60 percent of Brazilians have already shopped on these platforms, the survey found. Lower-income shoppers use them the most, according to Atlas Intel.

More: Brazil news in English, every day from The Rio Times.

Frequently Asked Questions

What was the “blusinhas tax”?

It was a flat 20 percent tax on parcels worth less than US$50 bought from overseas sites like Shein and AliExpress.

Why did Congress make the tax break permanent?

Lawmakers faced a hard September 8 deadline. Without a vote, the old 20 percent tax would have returned automatically.

What happens to bigger overseas orders?

Orders worth US$50 to US$3,000 still face a 60 percent tax. Brazil’s state sales tax applies on top of that.

Sources: The Rio Times Online, Reuters, Bloomberg, CNBC, Agência Senado, Atlas Intel.