Brazilian President Lula da Silva signed on Thursday the law that eliminates the 20% import tax on international purchases of up to 50 dollars. The measure, which had already been in effect since May through a Provisional Measure, would have expired on September 8 if not approved by Congress, which happened the previous week.
The proposal was part of Lula's campaign agenda for re-election. In his speech at the Palace of the Presidency, Lula defended that the measure represents justice for people who do not fly and do not have access to products such as wine, whiskey, or imported leather clothes, but who can now buy smaller products through international platforms.
The end of the tax generated criticism from Brazilian business sectors. The Brazilian Textile Retail Association classified the measure as a "serious economic setback" and a "direct attack on national industry and retail." The National Confederation of Industry alleged that the text broadens the inequality between national and foreign companies. Lula rebutted these arguments, considering the business owners' discourse about losses and job losses "somewhat false."
Lula revealed for the first time that he only implemented the taxation in 2024 "reluctantly," due to pressure from the then president of the Chamber of Deputies, Arthur Lira, currently a Senate candidate. According to Lula, Lira mentioned the existence of pressure from business owners and ongoing negotiations between Congress and the Palace of the Presidency.
