By Hash Techs 
The import tax policy known as the “weave rate” caused a 40% decrease in imports in its initial month but resulted in a revenue of R $ 533 million for the government within three months. It is projected to generate over R $ 2 billion annually.
Summary of essential information:
- The rate led to a decrease of 33.6% in international buying over three months.
- The government collected R $ 533 million during that time, with an annual estimate exceeding R $ 2 billion.
- The proposed measure, supported by the national retail industry, continues to generate differing views on its impact on the economy.
Brazilians stopped importing blouses due to the increase in prices.
The initiative was implemented in August, resulting in an immediate decline. Prior to the implementation, 18.4 million product shipments were below $50 in July, dropping to 10.9 million in August (a decrease of 40%). While there was a slight improvement in September and October, purchases still remained 33.6% lower than before, with a total of 34 million items bought from August to October.
Popular global online shopping websites like Shein, Temu, and Alibaba faced the most impact, despite more companies joining the Remessa Conform Program. The volume of purchases in international e-commerce drastically decreased from 51.3 million items between April and June to 34 million after the implementation of taxes.
In the initial three months, the latest bill resulted in revenues of R$ 533 million, a significant rise from the R$ 25.4 million collected in the prior quarter. Although federal income increased, states saw a decrease in ICMS collection as a result of reduced imports. The retail industry is now urging Confaz to raise the state’s ICMS rate from 17% to 25%, potentially leading to higher prices for goods.
Opinions are still divided on the measure.
The Retail Development Institute (IDV) suggests that the decrease in imports has contributed to the enhancement of domestic sales. Retail growth in August and September stood at 4.5%, marking a modest rebound following a period of decline. Mr. Atila Lira, who is responsible for the proposal, stated that the taxation is intended to promote fair competition between local retailers and foreign corporations.
The impact on consumers is evident: reduced international purchases and potential price changes because of high taxes. Despite this, many individuals continue to criticize the decision made by the Lula administration.
Through the use of a roadway