Brazilian industry demands tax parity with purchases from abroad to preserve companies and jobs
When we explore stores, virtual or physical, we ignore the behind the scenes of the giant textile industry Brazilian. With 200 years of history, it is one of the economic pillars of the country, generating around 1.7 million jobs. Over 200 thousand companies, 97% small and medium-sized, support this supply chain, but are faced with a government measure that favors industry foreign to the detriment of the national.
For some time, international companies have taken advantage – illegally – of an exemption established exclusively for international remittances, up to $50, between private individuals. In addition to underbilling invoices, these companies also designated individuals as “sellers,” despite the purchase being negotiated before an international legal entity.
therefore, the IRS designed the program Compliant shippingwhich called for greater control over the operations carried out by these “cross-border” companies, as well as an equalization of tax burdens, in order to make the scenario more competitive.
However, although, in fact, with the order MF 612/2023, these “cross-border” companies were obliged to pay the import tax, as well as collect the state tax levied on the import, in addition to the tax rate state be quite small compared to domestic companies, the Executive Branch maintained the exemption for postal remittances or packages up to US$50.00 and authorized this exemption for transactions between entities and individuals.
In other words, what was supposed to be a relief for the national textile trade has turned into a nightmare!
As if this were not enough, when the collection of state taxes on imports from these international e-commerce sites was established, a unified rate of 17% was established, which differs from the ICMS rate collected on the invoice of domestic merchants of the same segment, approximately 39.04%. Not to mention the other taxes (IPI, PIS, Cofins), which weigh on national traders.
Brazilian industry calls for tax equality to preserve companies and jobs. It is crucial to correct the unfair tax burden on operations, ensuring equality and stimulating competitiveness in the textile trade. The unequal conflict, exacerbated by fiscal policy, seriously damages economic growth.
Mírian Lavocat is a tax lawyer.
Source: Terra
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