Brazil eliminates tax on low-value imports, easing access for Chinese e-commerce platforms

Brazil's legislature approved the removal of a tax on small parcels just before the measure was due to lapse, effectively granting tariff-free entry for Chinese e-commerce sites Shein, Shopee and AliExpress. The levy, which applied to inexpensive items like clothing, electronics, toys and kitchen gadgets, had become unpopular among voters as the October 4 presidential election approached. President Luiz Inacio Lula da Silva, who chose not to hold a signing ceremony amid a separate banking controversy, praised the repeal as a matter of social justice, arguing that wealthier travelers avoid taxes while low-income Brazilians face them on $50 purchases.

While the policy is expected to boost consumer access, officials acknowledge it will shrink the national tax base. The timing reflects political calculations to appease voters while sidestepping media focus on the president's allies implicated in the bank case.