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Brazil Scraps Import Tax on Small Overseas Parcels

9/10/2026

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Story summary
  • Brazil eliminated its federal import tax on small overseas parcels, labeling the move social justice.
  • Analysts say the cut shrinks Brazil’s revenue base ahead of the October 4 presidential election.
  • President Luiz Inácio Lula da Silva skipped the signing ceremony to avoid focus on a bank scandal involving his allies.
  • Lula’s campaign video highlighted that upper-middle-class shoppers pay no tax on $2,000 purchases, unlike favela buyers spending $50.