arrow_backBack
PoliticsEconomyLulacongress

Lula allies picked to lead Brazil panel on ending import tax on small purchases

bookmark_borderSave
MRBy Marina Rocha•August 30, 2026•Sources: Folha de S.Paulo, G1

Brazil's National Congress installed on Friday (28) the joint committee that will review the provisional measure ending the so-called "blouse tax", a 20% import duty on international purchases of up to US$ 50. Deputy Reginaldo Lopes (PT-MG), from President Luiz Inácio Lula da Silva's Workers' Party, was chosen to chair the committee, and Senator Leila Barros (PDT-DF) will serve as rapporteur, according to G1 and Folha de S.Paulo.

The timetable is tight. According to Reginaldo Lopes, the rapporteur presents her report on Monday (31), and the committee may vote the text on the same day. On Wednesday (2), the measure is expected to go to floor votes in both the Chamber of Deputies and the Senate. The deputy said committee members will hear the productive sector despite the short deadline and did not rule out changes to the text. "My schedule is open to hear everyone", he said.

Speaking to Folha, the committee chairman defended the exemption as "tax justice". "Exempting up to US$ 50 is almost an international practice. It is a symmetry of rights. Those with more economic power buy US$ 1,000 in their luggage and US$ 1,000 at the mall. Does anyone think that those who pay the most tax have no right to buy from abroad too?", asked the Workers' Party deputy, who was one of the negotiators of the tax reform in Congress.

Rapporteur backs the government's text

Leila Barros said she is "absolutely in favor" of the government's original text, but stated she will talk to representatives of productive sectors opposed to ending the charge. The senator told Folha she meets with the government's congressional base still on Friday. "We will dialogue as calmly as possible with everyone who has spoken out. It will be a task force on Saturday and Sunday", she said.

The provisional measure, a type of executive decree in Brazil that requires congressional approval to remain in force, was published in May and must be approved by September 8 or it expires. Under the measure, the Finance Ministry gained authority to change import tax rates on international postal shipments, including cutting to zero the levy on purchases of up to US$ 50, about R$ 258. The tax, nicknamed for the cheap clothing bought on platforms like Shein, Shopee and AliExpress, was created by Lula's own government in 2024 and drew backlash from consumers. Brazilian retailers, in turn, argue that the exemption favors imports and creates uneven competition with local commerce.

The measure was unlocked at a lunch on Wednesday (26) at the Alvorada Palace, the presidential residence, between Lula and the heads of the Chamber, Hugo Motta (Republicanos-PB), and the Senate, Davi Alcolumbre (União-AP). Alcolumbre guaranteed the measure "will not expire". "We will deliberate, so it can be signed into law, for millions of Brazilians to have a better quality of life", the Senate president declared. The issue has popular appeal and is central to Lula, who is running for a fourth term.

The next step is the rapporteur's report on Monday. If Congress does not vote on the measure by September 8, the 20% tax returns the following day.

Comments

No comments yet. Be the first to comment!

Log in to leave a comment. Sign in