President Luiz Inácio Lula da Silva reached an agreement with Chamber of Deputies President Hugo Motta and Senate President Davi Alcolumbre to form a joint congressional committee next Tuesday, September 1. The panel will review the provisional measure that suspended the 20% federal import tariff on foreign retail purchases up to $50, known in Brazil as the "taxa das blusinhas" (blouse tax), according to reporting by Folha de S.Paulo.

The 20% levy on small cross-border parcels has been paused since May under an executive provisional measure issued by the government. The suspension faces strong pushback from domestic manufacturing and retail sectors. The National Confederation of Industry (CNI) issued an official statement on Wednesday opposing the tax repeal, warning that dropping the tariff threatens 109,000 domestic jobs.

The CNI study relied on foreign trade figures compiled by the Ministry of Development, Industry, Commerce and Services (MDIC). According to the confederation's economic analysts, local manufacturers lose 3.11 reais for every real spent by consumers on small parcels from international e-commerce platforms. The organization estimates that abolishing the tax entirely could cost Brazilian industrial producers 21.8 billion reais in losses.

The tariff forms part of the federal tax authority's Remessa Conforme compliance program, which governs cross-border e-commerce shipments into Brazil. Domestic retailers have consistently argued that tax exemptions for foreign online sellers create unfair competition against Brazilian goods, which face standard local taxation.

Lawmakers now face a tight legislative calendar. The provisional measure will officially expire on September 8 unless both the Chamber of Deputies and the Senate vote to approve it. If Congress allows the measure to lapse, the 20% import tax will automatically resume less than four weeks before the first round of national elections on October 4.