Lula Scraps Hated Small Import Tax Ahead of Brazil Election (2)

Brazilian President Luiz Inacio Lula da Silva scrapped a tax on imports valued at $50 or less, a measure likely to boost his popularity less than five months before the election.

The 20% levy was introduced in 2024 to help Brazilian retailers struggling to compete with low-cost Asian rivals such as Shein Group Ltd., Sea Ltd.’s Shopee, and the fast-growing Chinese app Temu, as they expand in Latin America’s largest economy.

The central government collected 1.8 billion reais ($368 million) in import taxes on international purchases in the first four months of 2026. Eliminating the levy will cost ...