Brazil Scraps Tax on Imports Valued at $50 or Less

The measure had applied to low-value shipments entering the country. Officials announced the decision on Wednesday. The tax removal affects a category of imports that had been subject to duties since an earlier policy change. The previous tax was intended to protect local retailers from competition by foreign online sellers.

The policy shift comes less than five months before a national election. Domestic businesses had pressed for the tax to remain in place, arguing it helped level the playing field against overseas platforms that ship small packages directly to consumers.

Supporters of the tax said it generated revenue and shielded local commerce. Opponents argued the levy raised costs for lower-income buyers who rely on affordable imported goods. The government did not release an estimate of the revenue impact from removing the tax.

Background on the Import Tax The tax on shipments valued at $50 or less was introduced to address a surge in direct-to-consumer imports. It applied regardless of whether the goods were purchased through established retailers or international e-commerce sites.

Implementation of the tax had drawn mixed reactions from consumers and businesses. Some buyers welcomed lower prices on imported items while retailers warned of increased pressure on domestic sales. The reversal means qualifying packages will now enter without the previous duty.

Customs authorities will continue to enforce other regulations, including those related to prohibited items and proper declarations.