By Hash Techs 
Shein and AliExpress opposed the recent rise in the ICMS rate to 20% on international shipments, stating that it disproportionately impacts low-income consumers and widens access inequality in the Brazilian market.
You need to know a summary of what to do.
- ICMS on international shipments will rise to 20%, but the change will be implemented starting in April 2025.
- Shein and AliExpress oppose the measure, pointing out its adverse effects on the lower middle class and vulnerable groups.
- The additional tax could increase the overall price of goods by as much as 50%, making it even more difficult to purchase imported items.
“It negatively impacts only the most disadvantaged individuals.”
Shein expressed disappointment over the rise in ICMS adding to the existing high tax load in the country. The new rate could push taxes on international products up to 50%, increasing costs for consumers. For instance, a dress priced at R $ 100 might end up costing R $ 150 under the new rate.
AliExpress mentioned that in August, there was a tax adjustment that doubled taxes on items under $50, and the new increase will also double charges on products above that amount, leading to a significant impact on international shipments.
Shein highlighted that 88% of Brazilian platform users are from lower socioeconomic classes, who will be the most impacted by the decision. They both suggest that the new fee may restrict access to necessary goods and establish consumption obstacles.
When does it become beneficial to increase ICMS rates?
The ICMS rate hike will take effect on April 1, 2025. In states with a rate below 20%, the adjustment will require approval from the Legislative Assemblies.