Brazil Scraps Tax on Small Parcels, Benefiting Shein, Shopee, and AliExpress
Brazil's Congress has just passed a law removing import taxes on small packages, right before the previous exemption was set to expire. This change allows major Chinese e-commerce platforms like Shein, Shopee, and AliExpress to enter Brazil, the biggest economy in Latin America, while they face challenges in the US and EU. However, this could lead to a drop in tax revenue for Brazil, especially since these taxes on affordable goods were unpopular ahead of the upcoming presidential election on October 4. President Luiz Inacio Lula da Silva, who skipped a signing event due to a scandal involving a closed bank, shared his views in a social media video, framing the law as a matter of fairness for all Brazilians.
Key facts
- Brazil's Congress cleared the measure days before it expired.
- The tax elimination benefits Shein, Shopee, and AliExpress.
- The platforms are losing access in the US and EU.
- The levy applied to lower-value shirts, electronics, toys, and kitchen gadgets.
- The tax was unpopular among Brazilians ahead of the October 4 presidential election.
- President Lula did not hold a signing ceremony due to a domestic scandal involving a bank and his allies.
- Lula commented on the initiative in a video posted by his campaign.
- Lula stated the approval was a matter of social justice.
Entities
Institutions
- Brazilian Congress
- Shein
- Shopee
- AliExpress
- Brasilia
Locations
- Brazil
- United States
- European Union
- Latin America