Brazil eliminates 20% import tax on low‑value online purchases, cutting Shein skirt prices

President Luiz Inácio Lula da Silva signed a provisional measure on 12 May 2026 that removes the 20% import tax applied to international purchases of up to US$50. The change takes effect the next day and reduces the final price of low‑value orders on platforms such as Shein by roughly 17%, according to an AtlasIntel/Bloomberg survey.

The measure does not affect the state‑level ICMS tax, which remains between 17% and 20% depending on the delivery state, nor does it eliminate the 60% import tax and ICMS on orders above US$50. The policy shift follows widespread criticism, with 62% of Brazilians previously viewing the tax as a major government error. Shein, Brazil’s most downloaded fashion app in 2021, is expected to see increased sales of its long‑skirt boho‑chic and satin styles as prices become more affordable.