By Hash Techs 
The Post Office is experiencing an unprecedented financial crisis due to a significant increase in losses compared to the previous year. This is partly due to the end of tax exemptions for imports under $50.
Summary of the information you should be aware of:
- Posts in 2024 had a historic loss of R $ 2 billion, three times higher than the losses from the year before.
- The termination of the tax exemption for purchases under $50 significantly decreased the amount of foreign imports.
- The state’s income from international activities decreased from R$3.3 billion to R$3.1 billion over a nine-month period.
Brazilians have ceased their imports, leading to disruptions at the post office.
The new tax implemented in August has already had noticeable effects, leading to a 40% decrease in imports as Brazilians have ceased purchasing from international platforms such as Shein and AliExpress.
Post office revenue from international operations dropped from R$1.3 billion in 2023 to slightly over R$1 billion between July and September this year. The decline in order volume not only led to reduced revenue but also impacted the company’s logistics and operational efficiency.
The tax measure introduced during Lula’s administration aimed to boost tax revenue but had the unintended consequence of discouraging Brazilians from shopping on foreign websites. This led to an increase in prices for previously affordable products, prompting consumers to seek alternatives in the local market and decreasing the demand for delivery services.
The Post Office is looking for new approaches to stay important and address the decline in revenue, but it seems likely that the negative trends will continue without substantial changes.
Information sourced from See Business.