Brazil Delays Blusinhas Tax Committee Review

What Is the 'Blusinhas Tax' and Why Does It Matter?

Brazil currently exempts international online purchases up to US$50 from the 20% import tax — thanks to a Provisional Measure (MP) signed by President Lula on 12 May 2026. If Congress does not approve the MP by 8 September, the 20% tax automatically returns on 9 September.

Why Was the Congressional Committee Delayed?

The mixed committee that must analyse the MP was supposed to be installed on Wednesday, 12 August, but Congress postponed the session to Thursday, 13 August. The hold-up stemmed from a political dispute: relations between President Lula and Senate/Congress President Davi Alcolumbre (União-AP) broke down in late April after Alcolumbre helped block the nomination of Attorney-General Jorge Messias to the Supreme Court (STF). The two leaders only resumed dialogue the previous week, and the committee installation is now seen as a goodwill gesture from Alcolumbre toward the government.

What Changes Did the MP Introduce?

Under the new rules, the Finance Minister gains authority to adjust import tax rates on international postal shipments — including reducing the rate to zero for purchases up to US$50. Before this MP, the 20% flat tax (nicknamed the 'blusinhas tax') applied and drew widespread consumer backlash over fears that cheap everyday items from platforms like Shein and Shopee would become more expensive.

Is This Decision Political?

Critics from the Centrão bloc and the opposition have called the MP an electoral move: the government itself created the blusinhas tax, then issued an MP to revoke it in an election year, effectively shifting responsibility for the decision to Congress. Lawmakers running for re-election have also pressured for a quick resolution given the tax's unpopularity with voters.

What Happens Next?

If the committee is installed on 13 August and the MP is approved before 8 September, the zero-rate exemption for sub-US$50 purchases continues. If not, the 20% tax resumes automatically from 9 September 2026.