Brazil’s high taxes make AliExpress ‘cheap’ items expensive

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A so-called temporary measure (MP) that the government could impose on foreign imports has sparked heated discussions in Brazil since March.

The policy was well received by a group of retailers led by Luciano Hang, owner of Havan. However, the majority of consumers in Brazil did not buy it. One user, Bruno Carlos Santos, created a petition on the Change website stating his opposition to the potential tax increase. To date, nearly 100,000 people have signed the petition in support.

According to the current market response, the Brazilian user’s request has been communicated to the Brazilian government, but so far, no official information has been released.

So why would consumers stand up for platforms like Shopee, AliExpress, Wish, etc.? The main reason is Brazil’s high tax policy.

1. According to Brazil’s current tax policy, goods imported into Brazil will be charged 60% import duty and other taxes, and if the policy is implemented, it will make the prices of the originally cheap goods purchased online from the aforementioned e-commerce platform skyrocket, making it difficult for Brazilian consumers to afford,so many consumers accused Brazilian politicians of being profit-oriented in the petition.

2. Brazilian retail associations and business representatives sent a letter to the Federal Attorney General’s Office (PGR) denouncing the “unfair and predatory competition” of e-commerce platforms such as AliExpress, Mercado Livre, Shoppe, Wish, Shein and others, which has impacted the business of local retailers. The impact on the business of local retailers. More than 500,000 international orders are transacted daily in Brazil through these e-commerce platforms, with an annual growth rate of more than 150%, and less than 2% of these products are taxed. Under Brazil’s current tax policy, goods imported into the country are subject to 60% import and other taxes, which, if implemented, could make “cheap” goods on AliExpress platforms expensive and unaffordable for Brazilian consumers.