Why did Brazil scrap the 'blusinhas tax' — and could it return?

Brazil's Finance Ministry zeroed out the 20% import duty on international purchases under US$50 in May, issuing a Provisional Measure (MP) that took effect immediately upon publication in the Official Gazette. The move was framed as a data-collection window: the government wanted to measure the real impact on the Brazilian economy before making a permanent decision.

What do the numbers show so far?

Brazil's Federal Revenue Service (Receita Federal) confirmed that the volume of international parcels has surged since the tax was removed. Finance Minister Dario Durigan acknowledged the rise in an interview with Rádio Jornal (Pernambuco), saying the government has full visibility over the data and could recommend a policy reversal to President Lula at any moment.

What happens next with the Provisional Measure?

The MP is valid for 120 days. After that, Congress must vote to keep, block or amend it. Both domestic retailers and importers are already lobbying lawmakers — and even turning to the courts — to protect their interests. Parliamentary caucuses focused on trade, competitiveness and intellectual property issued a joint statement in June calling for equal tax treatment for all economic players.

Who is hurt and who benefits?

The Instituto para Desenvolvimento do Varejo (IDV) — which represents Americanas, Magazine Luiza, Casas Bahia, Lojas Renner, Dafiti, Centauro and others — warned that June retail sales figures will likely show contraction in several sectors, partly due to the FIFA World Cup but also because of the surge in foreign e-commerce platforms now operating with zero import duty. The IDV cautioned that prolonged tax-free imports could reduce employment and future investment in the domestic retail sector.

Consumers, on the other hand, largely opposed the original tax, arguing it made affordable, low-value goods more expensive and undermined the appeal of international platforms. Critics also noted an inconsistency: international travellers could bring goods back duty-free up to a certain quota, while online shoppers faced the levy.

Key Facts:
  • The 'blusinhas tax' was a 20% import duty on cross-border orders under US$50.
  • It was scrapped in May via Provisional Measure, effective immediately.
  • The MP is valid for 120 days and then requires Congressional approval.
  • Receita Federal data confirms a sharp rise in international parcel volumes.
  • Minister Durigan says a tax reinstatement could be proposed to President Lula at any time.
  • IDV warns of retail sales contraction and future job losses if the zero-duty policy continues.