Brazil Eliminates Import Tax on Low-Value Goods

President Luiz Inácio Lula da Silva signed a provisional measure on March 12, 2026 ^[3], eliminating a 20% tax on imports valued up to US$ 50 [1, 2].

The move aims to reduce the cost of living for citizens by removing the levy, commonly known as the "blusinha tax." However, the decision has created a sharp divide between consumer interests and domestic manufacturers who argue the tax protected local jobs.

The tax was originally instituted in August 2024 ^[4]. By removing it, the government seeks to improve the population's perception of their disposable income. This shift specifically targets small-scale cross-border e-commerce, which has grown rapidly in the Brazilian market.

The domestic textile industry is among the most vocal opponents of the measure. Juliana Lopes, an analyst for CNN Brasil, said the textile sector is among the groups that most disapprove of the end of the tax.

Industry leaders argue that the removal of the levy creates an uneven playing field. Joseph Couri, president of the Association of Micro and Small Industries (Assimpi), said ending the tax is a crime for the competitiveness of micro and small industries.

While the government views the move as a win for consumers, some retail associations disagree. A spokesperson for retail associations said the consumer also benefited from the tax and defended its maintenance.

This contradiction highlights the tension between the immediate price relief for shoppers and the long-term stability of Brazil's industrial base. The textile sector fears that a flood of cheap, untaxed imports will lead to factory closures and job losses across the country.