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[POLITICS] · Brazil · 26 sources

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Lula pushes for end of import tax and increased defense spending

President Luiz Inácio Lula da Silva is intensifying efforts to pass a provisional measure (MP) that would eliminate the 20% import tax on international purchases of up to US$ 50, popularly known as the ‘taxa das blusinhas’. Lula has framed the removal of this tax as a matter of social justice, arguing that it disproportionately penalizes lower-income citizens compared to high-income travelers. The MP must be approved by the Brazilian Congress by September 8, 2026, or it will lose its validity and the tax will automatically return.

Finance Minister Dario Durigan stated that the government is mobilizing its base in Congress to establish a joint commission to expedite the analysis of the measure. However, the proposal faces resistance from the retail sector, which cites concerns over unfair competition and high delinquency rates. Some lawmakers have suggested providing similar tax exemptions for domestic products up to R$ 250 to ensure market parity.

Separately, President Lula has advocated for increased military spending to bolster national sovereignty. During a visit to the Aramar Nuclear Industrial Center, he emphasized the importance of investing in defense technology, including the completion of a submarine program and the peaceful enrichment of uranium.

Entities

Brazilian Congress · Congresso Nacional · Darío Durigan · Davi Alcolumbre · FIEMG · Frente Parlamentar pelo Brasil Competitivo · Hugo Motta · Luiz Inácio Lula da Silva · Ministério da Fazenda

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about 1 month ago
about 1 month ago