SAO PAULO, May 29 (Reuters) - Brazilian Finance Minister Fernando Haddad said on Monday the government has not yet decided on the tax rate for shipments from international e-commerce companies, following previous indications that it could be lowered.
On Friday, Haddad had stated the current rate of 60% could change as part of a government's plan to bring companies that currently do not pay this tax into compliance, absorbing the cost themselves instead of passing it on to consumers.
When asked by reporters about the new rate on Monday, he responded, "That is still undecided."
Haddad further stated that the government is finalizing an e-commerce compliance plan, which is expected to be released "in the coming days."
International shipments made by companies are currently subject to a 60% tax.
Haddad had already announced the government would look for administrative means and implement heightened oversight to close a loophole that Asian e-commerce giants were seen taking advantage of by dispatching orders as if they were individuals to benefit from the tax exemption.
Alibaba Group's AliExpress, Sea Ltd-owned Shopee and Shein were seen as the main targets of the measure.
The move to tighten oversight came after the government backed away from its initial plan to end tax exemptions for packages sent by individuals.
While this measure would have increased revenue, it faced significant backlash on social media, with many critics arguing that the new government of leftist President Luiz Inacio Lula da Silva would disproportionately affect economically disadvantaged individuals. (Editing by Alistair Bell)
