SAO PAULO (Reuters) – Brazil’s finance minister said on Thursday the country would implement a new “digital tax” on shipments from e-commerce giants, after backtracking earlier this week from a decision to tax individual-to-individual shipments of up to $50.
“We will follow the example of developed nations, a digital tax,” Fernando Haddad told reporters. “Consumers will be exempt from any tax collection when they make the purchase, companies will collect it without passing on any additional cost”.
The move comes after President Luiz Inacio Lula da Silva asked his economic team not to proceed with a previously planned ending to tax exemptions for international orders from individuals.
Haddad did not provide further details on the new proposal.
He had already announced the government would look for administrative means and implement heightened oversight to close a tax loophole that Asian e-commerce giants were seen taking advantage of.
Alibaba Group’s AliExpress, Sea Ltd-owned Shopee and Shein were seen as the main targets of the measure.
Haddad previously said AliExpress and Shopee had agreed with the tax proposal before the government reversed it. He said on Thursday that Shein was planning to nationalize 85% of its Brazil sales by implementing local production.
Shein did not immediately respond to a request for comment.
(Reporting by Isabel Versiani; Writing by Gabriel Araujo; Editing by David Gregorio)
