In a surprising move reported by Reuters, Brazilian President Luiz Inacio Lula da Silva on Thursday enacted a law imposing a 20% tax on international purchases valued at up to $50. This decision comes despite his previous criticisms of the measure.
Lula signed the new tax into law during a session of his Council for Sustainable Economic and Social Development in Brasilia. The tax primarily targets low-cost online international purchases, a change ardently advocated by Brazilian retailers who feel overwhelmed by competition from major Chinese e-commerce companies.
Earlier this year, in May, Lula had shown an openness to discussing the tax with lawmakers, indicating he might veto the measure due to its potential impact on lower-income citizens. Despite this, he did not entirely rule out the possibility of approving the tax.
The contentious tax has been introduced as part of a broader legislative package that establishes the Green Mobility and Innovation program (Mover).
