Brazil Government Ramps Up Pressure on Senate Over Controversial ‘Blusinhas’ E-Commerce Tax Exemption

The Brazilian government is pressuring the Senate to immediately advance a crucial Provisional Measure (MP) that eliminates a federal tax on low-value international e-commerce purchases, a move that is highly popular with consumers but fiercely opposed by domestic retailers. The Minister of Institutional Relations, the top liaison between the executive branch and Congress, formally asked Senate President Davi Alcolumbre this week to install the necessary joint commission to analyze Provisional Measure 1357/2026 without further delay. This political push comes because the measure must be approved by the National Congress by September 24, 2026, or it will lapse, automatically reinstating the tax.

The measure, signed by President Luiz Inácio Lula da Silva, reverses a 2024 policy that had placed a 20% Import Tax on international purchases up to US$50, a levy widely nicknamed the "taxa das blusinhas" or "little-blouse tax" due to its impact on cheap apparel and accessories bought from foreign platforms. Since arriving in the Legislative branch, the MP has stalled completely for two months, never having its initial mixed commission—composed of members from both the Senate and the Chamber of Deputies—installed, which is the first step in the approval process for a Provisional Measure. A Provisional Measure is an executive decree that has the force of law immediately but must be converted into a regular law by Congress within 120 days to remain valid.

The measure’s future hinges on Senator Alcolumbre, the key gatekeeper of the Senate, whose decision to install the committee determines whether the measure moves forward or dies on the calendar. For the government, a lapsed measure would be a political setback, as the tax on cross-border shopping proved highly unpopular with consumers, especially those in lower-income brackets who use platforms like Shein, Shopee, and AliExpress for affordable goods.

The government's maneuver is occurring against the backdrop of intense lobbying from Brazilian retail companies and manufacturers. Domestic retailers have long argued that the absence of a federal import tax on low-value goods creates an unfair advantage for foreign competitors, allowing them to undercut local prices and threaten domestic production. The outcome will fundamentally shape the competitive landscape for shopping in Brazil, either by restoring a federal levy on small international parcels or by cementing the tax-free status for those purchases.

The immediate next step is the decision by Senator Davi Alcolumbre to comply with the government’s request and install the commission. If the MP is not voted on and converted into law before the September 24 deadline, the 20% Import Tax on purchases up to US$50 will automatically return, increasing the final cost of popular imported goods for millions of Brazilian shoppers.

What it touches The fate of Provisional Measure 1357/2026 has a direct impact on the revenue and competitiveness of the Brazilian retail sector. Companies focused on the domestic market, such as apparel and footwear retailers (e.g., Lojas Renner and Arezzo), stand to benefit if the exemption lapses and the tax returns, while international e-commerce platforms like Shopee and AliExpress gain a competitive edge if the exemption is approved.