The Brazilian federal government has eliminated the import tax on international online purchases valued up to US$ 50, effective Wednesday, May 13 [2].

This policy shift targets the widely known "taxa das blusinhas," or "little blouses tax," which impacted millions of consumers purchasing low-cost apparel and electronics. By removing the federal levy, the administration aims to lower the cost of living for citizens who rely on cross-border e-commerce for affordable goods.

President Luiz Inácio Lula da Silva announced the measure at the Palácio do Planalto in Brasília. The change follows a period where a 20% [1] import tax was applied to these small-scale transactions. The government said it intends to simplify the taxation process for imports while providing immediate financial relief to the consumer base.

However, the measure is not a total tax exemption. State-level taxes, specifically the ICMS, remain unchanged [3]. This means that while the federal portion of the cost is gone, buyers will still see state taxes applied to their final checkout price.

There is currently a discrepancy regarding the legal status of the move. Some reports indicate the change was formalized via a Provisional Measure (MP) and is already in effect [3]. Other sources said that while the exemption is active, it still requires formal approval from the Brazilian Congress to become permanent law.

Domestic industries have reacted with concern. Entities within the Agreste clothing hub said the removal of the tax will create unfair competition. They argue that the influx of cheap, tax-free international goods will undercut local textile producers who cannot compete with the pricing of global e-commerce giants.

Ministry of Finance executive secretary Rogério Ceron was involved in the administration of the announcement. The government said the move is necessary to modernize trade and assist the public, despite the pushback from the domestic manufacturing sector.

The federal government zeroed the 20% tax on online orders up to US$ 50.

This move represents a strategic pivot by the Lula administration to prioritize consumer purchasing power over the protectionist interests of the domestic textile industry. By removing the federal barrier on low-value imports, Brazil is aligning more closely with global e-commerce trends, though the continued existence of state ICMS taxes prevents a total tax-free environment. The pending congressional approval creates a window of legal uncertainty that may affect how international retailers price their goods for the Brazilian market in the short term.