Lula-Lira feud continues over Asian e-commerce platforms
Last Thursday, President Luiz Inacio Lula da Silva reacted to the decision of House Speaker Arthur Lira to put to a vote a bill imposing a tax on foreign purchases up to $50. The president said he could veto the bill if it was approved.
To borrow his words. “There are no scheduled meetings [with Mr. Lira]”But if he wants to talk, I am available. I am inclined to veto,” Lula told reporters, adding that he was unsure how much “poor girls” buying “trinkets” would actually compete with sales of Brazilian products.
- Two days earlier, Lira had said he would try to reach an agreement with the government, but if no agreement was reached the issue would be decided in the lower house in the coming days.
current situation. Brazilian retailers have complained about unfair competition from Asian platforms such as AliExpress, Shein and Shopee. They argue that reinstating the standard 60% import tax on these purchases would not make the situation more fair, as products sold by Brazilian retailers carry an average tax burden of 109%, according to estimates by retail lobby group IDV.
Why is this important? The industry now has the backing it needs from lawmakers and, more importantly, from Lira, who is eager to leave a legacy in his final months leading the House.
- The House of Representatives will have a new speaker next year, to be elected in 2025 and 2026, and…
