Congress postpones installation of the commission to analyze MP for the 'Blouse Tax'

'Blouse tax' could return in September if provisional measure is not approved The National Congress postponed until Thursday (13) the installation of the joint commission that will analyze the provisional measure (MP) that ends the 20% import tax on international purchases of up to US$50, the so-called blouse tax. There is still uncertainty surrounding the name of the deputy who will preside over the collegiate and the senator who will be the MP's rapporteur. The installation was scheduled for this Wednesday (12). The MP was published by the government of President Luiz Inácio Lula da Silva (PT) on May 12th and, if it is not approved by September 24th, it loses its validity and 20% taxation resumes from the 25th. With the new rules, the Minister of Finance now has the power to change the import tax rates on international postal shipments, including reducing taxation of up to US$50 to zero. Articles of clothing clothing store Uberaba 19-03-2021 Reproduction/TV Integration The MP's processing was blocked due to the break between Lula and the president of Congress and the Senate, Davi Alcolumbre (União-AP), after the senator articulated the rejection of the nomination of the Union's attorney general, Jorge Messias, to the Federal Supreme Court (STF) at the end of April. The two resumed dialogue last week and the installation of the joint commission is seen as a gesture from Alcolumbre to the government. Despite this, parliamentarians, especially those running for re-election to the Chamber and Senate, also pushed for the matter to move forward due to popular appeal. The government's decision to issue, in May, an MP to revoke a tax that it created was interpreted by members of the Centrão and the opposition as an electoral initiative. In an election year, the measure transferred the decision to maintain or overturn the charge to Congress. Blouse tax The government's decision to create the so-called "blouse tax" faced resistance from a large part of Brazilian consumers, who argued that the measure would result in an increase in the price of popular and low-value products and a reduction in the attractiveness of international e-commerce platforms. Critics of the “blouse tax” also pointed out a difference in treatment in relation to purchases made abroad. For example, tourists returning to Brazil from international trips can bring products without paying tax, as long as the exemption quota limit is respected. On another front, national retail entrepreneurs argue that the exemption for low-value international purchases favors imported products and creates unequal competition with Brazilian trade. The sector defends the so-called "tax equality", with more balanced taxation between national and imported products, under the argument of protecting companies and jobs in the country. The discussion also gained space in the political debate. The decision to establish a 20% rate on international purchases of up to US$50 was criticized by the opposition, who classified the measure as another "tax increase" and accused the government of promoting a "collection drive". Approval of the charge in Congress required intense coordination between the government and representatives of Brazilian retail.