Government rules out signing MP to tax sales for ‘digital street vendor’ applications

Government rules out signing MP to tax sales for ‘digital street vendor’ applications

Platforms like AliExpress, Shein and Shopee should benefit. The measure had been a request from businessman Luciano Hang, allied with the president

Two days after the Minister of Economy, Paulo Guedes, defended the taxation of purchases made through international platforms such as AliExpress, Shein and Shopee, President Jair Bolsonaro took to social media this Saturday to say that he will not sign any Provisional Measure in this regard.

Commerce through these sites has become popular in Brazil in recent years, in a kind of “digital street vendor”. As an alternative to raising taxes, Bolsonaro defended the inspection of sales to avoid possible irregularities.

“I will not sign any MP to tax purchases by apps like Shopee, AliExpress, Shein, etc. as much of the media has been publicizing. For possible irregularities in this service, or others, the way out should be inspection, not tax increases. Good afternoon everyone!” he wrote on Twitter.

On Thursday, at a consulting event, Guedes criticized the platforms by saying that they practice fraud by not paying taxes. The current rule allows the entry of products of up to US$ 50, without taxation, as long as the sale takes place between individuals.

— We want the rules of the game to be at least the same for everyone. A guy who is clearly doing fraud, who enters without tax, with nothing can’t do it,” said Guedes, at an Arko Advice event with Traders Club. — It’s a fraud because he falsifies the value of the good.

Businessman Luciano Hang, owner of the Havan chain of stores and longtime ally of Bolsonaro, and the president of Multilaser, Alexandre Ostrowiecki, stitched together the text of the MP, along with other businessmen. Under pressure from industry and retail, the objective was to tighten the rules for imports.

In the Federal Revenue, there is an assessment that international companies would be selling to Brazilians illegally, circumventing the system. Another possible fraud would be to declare the good for a lower value, below the established limit.

Source: The Globe

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