Brazil industry warns tax removal threatens 109,000 jobs

The National Confederation of Industry (CNI) has warned that ending the ‘blusinhas tax’—an import duty on small international purchases—could jeopardize 109,000 jobs and reduce domestic production by R$21.8 billion (approximately US$4.2 billion) by 2026.

According to a technical note from the CNI, removing the import tax on items valued up to US$50 under the Remessa Conforme Program would accelerate the volume of imports and increase the amount of money sent abroad. The confederation argues that the tax helps mitigate the competitive disadvantage faced by Brazilian producers, who are subject to higher tax burdens than foreign platforms.

Projections suggest that a zero-rate policy could lead to a 42.3 percent rise in low-value imports compared to a scenario where the 20 percent duty remains. The Brazilian National Congress is scheduled to vote on the matter in early September, with a deadline of September 8 to prevent the 20 percent duty from automatically returning.