{"id":89012,"date":"2024-05-23T20:11:32","date_gmt":"2024-05-23T23:11:32","guid":{"rendered":"https:\/\/murray.adv.br\/?p=89012"},"modified":"2024-05-23T20:11:34","modified_gmt":"2024-05-23T23:11:34","slug":"lula-to-veto-end-of-tax-exemption-for-purchases-up-to-50","status":"publish","type":"post","link":"https:\/\/murray.adv.br\/en\/lula-to-veto-end-of-tax-exemption-for-purchases-up-to-50\/","title":{"rendered":"Lula to veto end of tax exemption for purchases up to $50"},"content":{"rendered":"\n<h6 class=\"wp-block-heading has-text-align-center\"><em>Proposal backed by Lower House speaker is being discussed under new policy for automotive industry<\/em><\/h6>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p>05\/23\/2024 <\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\" \/>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter is-resized\"><img decoding=\"async\" src=\"https:\/\/s2-valorinternational.glbimg.com\/glI4GW_U7jVIRI-h4_BtqpEma-w=\/0x0:1000x822\/984x0\/smart\/filters:strip_icc()\/i.s3.glbimg.com\/v1\/AUTH_37554604729d4b2f9f3eb9ad8a691345\/internal_photos\/bs\/2024\/C\/V\/meV0KGRXeSdfHCeB5zzg\/presidente-lula-brenno-carvalho-agencia-o-globo.png\" alt=\"Presidente Lula \u2014 Foto: Brenno Carvalho\/Ag\u00eancia O Globo\" style=\"width:468px;height:auto\" \/><\/figure>\n<\/div>\n\n\n<p class=\"has-text-align-center\"><em>Presidente Lula \u2014 Foto: Brenno Carvalho\/Ag\u00eancia O Globo<\/em><\/p>\n\n\n\n<p>President Lula said on Wednesday (22) he would veto the end of the import tax exemption on international purchases of up to $50 if it is approved within the Green Mobility and Innovation Bill, known as Mover, Congressman Jos\u00e9 Guimar\u00e3es, leader of the government in the Lower House, told Valor. Lower House Speaker Arthur Lira insists on passing the legislation and has postponed the vote. A new attempt to vote on the matter should take place on Thursday (23).<\/p>\n\n\n\n<p>In recent weeks, the inclusion of the topic in the Mover Bill divided the groups in the Parliament and led the vote to being postponed on multiple occasions. Members of President Lula\u2019s Workers\u2019 Party (PT), understand that the end of the tax exemption could generate reactions in the party\u2019s electoral base and hurt the Lula administration if approved. The Liberal Party, former President Jair Bolsonaro\u2019s party, is also against it and proposed the approval of an amendment that would exempt from tax all domestic sales of up to $50. The proposal is considered a \u201cfiscal time bomb\u201d by government supporters and even oppositionists.<\/p>\n\n\n\n<p>In a text message sent on the WhatsApp group of government leaders in the Lower House, Mr. Guimar\u00e3es said that President Lula is in favor of the approval of the Mover Bill\u2014the country\u2019s new policy for the automotive sector\u2014but is against eliminating tax exemption on international purchases up to $50. Mr. Guimar\u00e3es confirmed his statement to Valor: \u201cHe [President Lula] will veto it [if it is approved].\u201d<\/p>\n\n\n\n<p>Mr. Lira insists on taxation and has received support from prominent Brazilian businesspeople in recent weeks. F\u00e1bio Faccio, the CEO of Renner, was in Bras\u00edlia to meet with Mr. Lira and other Lower House members and present some reasons to support the taxation. \u201cWe are not asking for commercial barriers. We\u2019re asking for fair competition. If we also had tax exemption, our products would be sold at half the price and with better quality,\u201d he argued.<\/p>\n\n\n\n<p>In previous weeks, executives from retailers Petz, Leroy Merlin, Riachuelo, and Mercado Libre also engaged in this effort to raise awareness among legislators and the government. \u201cThese e-commerce platforms claim that they are helping those with less purchasing power, but they are actually taking away these people\u2019s jobs and the money for social policies by not paying taxes,\u201d Mr. Faccio said.<\/p>\n\n\n\n<p>Valor found that retailers linked to IDV, the main retail association in the country, are hoping that, despite a possible veto by Mr. Lula, it will be possible to bring the import tax back through a debate with the president.<\/p>\n\n\n\n<p>\u201cWe have to move step by step, dealing first with the approval of the bill in the Lower House. Then, if the Executive branch resists, we can prove that the tax exemption is harmful to companies and jobs,\u201d said a person familiar with the matter. \u201cOne battle at a time.\u201d<\/p>\n\n\n\n<p>President Lula\u2019s opposition to the idea of returning the import tax is not new to retail and industry members and the possibility of a presidential veto did not surprise those who were in Bras\u00edlia on Wednesday (22) following the matter. The companies had been increasing pressure on Congress and seeking support from the government.<\/p>\n\n\n\n<p>This week, the CEOs of retailers such as Renner, Petz, Marisa, and Caedu sent video and text messages to Lower House members asking for support to eliminate the tax exemption, Valor found.<\/p>\n\n\n\n<p>International marketplaces claim that the exemption for purchases of up to $50 is a global practice that has allowed low-income people to have access to the same benefits as richer people who make purchases on international trips and has generated thousands of jobs in the logistics sector in Brazil.<\/p>\n\n\n\n<p>Furthermore, they argue that the impact on the domestic retail and industry is not as big as the companies say. \u201cThe share of international e-commerce platforms would not reach more than 0.5% of national retail,\u201d trade associations Proteste, Free Market Institute, and the Brazilian Association of Transportation Companies wrote in an open letter.<\/p>\n\n\n\n<p>If the exemption is eliminated, the taxation would be a 60% import tax on the products, in addition to the 17% Tax on Circulation of Goods and Services (ICMS) under the Federal Revenue\u2019s Remessa Conforme program. International companies claim that would create a global tax of 90%, making the cross-border market unfeasible.<\/p>\n\n\n\n<p>As an alternative, the Mover Bill rapporteur, Congressman \u00c1tila Lira, suggested changing the text to set an import tax of 25% or creating a schedule for levying the tax. However, the idea received no support from the Lula administration. \u201cI\u2019m hoping that it will be voted on Thursday [23] as I don\u2019t want to harm the bill,\u201d the rapporteur said. He pointed out that the government has requested the postponement fearing that an amendment by Congresswoman Adriana Ventura suggesting the extension of tax exemption to the domestic industry could be approved by the House floor.<\/p>\n\n\n\n<p>To legislators, Finance Minister Fernando Haddad advocated for a \u201cjoint solution\u201d involving the three branches of government to determine how the taxation of imports below $50 would be carried out.<\/p>\n\n\n\n<p>\u201cThe retail and industry segments\u2019 concerns are legitimate but we need to have an understanding between the three branches of government on this issue,\u201d he said at a public hearing in a committee by the Lower House.<\/p>\n\n\n\n<p>Mr. Haddad praised governors Tarc\u00edsio de Freitas (S\u00e3o Paulo) and Romeu Zema (Minas Gerais) for the agreement reached in the National Council of Finance Policy (Confaz) to levy ICMS on these imports.<\/p>\n\n\n\n<p>At the end of the hearing, Mr. Haddad told reporters he does see the topic being decided under the Mover Bill.<\/p>\n\n\n\n<p>*Por Marcelo Ribeiro, Raphael Di Cunto, Gabriela Pereira, Estev\u00e3o Taiar, Adriana Mattos\u00a0\u2014 Bras\u00edlia and S\u00e3o Paulo<\/p>\n\n\n\n<p>Source: Valor International<\/p>\n\n\n\n<figure class=\"wp-block-embed\"><div class=\"wp-block-embed__wrapper\">\nhttps:\/\/valorinternational.globo.com\/\n<\/div><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>Proposal backed by Lower House speaker is being discussed under new policy for automotive industry 05\/23\/2024 Presidente Lula \u2014 Foto: Brenno Carvalho\/Ag\u00eancia O Globo President Lula said on Wednesday (22) he would veto the end of the import tax exemption on international purchases of up to $50 if it is approved within the Green Mobility [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8106],"tags":[25056,25058,25057],"class_list":["post-89012","post","type-post","status-publish","format-standard","hentry","category-murray-news","tag-end-of-tax-exemption","tag-lula-to-veto","tag-purchases-up-to-50"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.0 - 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