Magalu and Havan ask the government to tax illegal products from China

Deepak Gupta
Deepak Gupta February 8, 2022
Updated 2022/02/08 at 3:03 AM

Whether in an advertisement Youtube or prime-time on open TV, you’ve probably seen movie star and Kung-Fu fighter Jackie Chan dressed in orange clothes and dishing out “Shopee scams” ​​in competition. But the competition wants to fight back.

Magazine Luiza and Havana lead a movement that calls for taxation of illegal products that are purchased in China. In response, the Bolsonaro government begins to pull strings, through the economy minister, Paulo Guedes, and the president of the central bankRoberto Campos Neto, for this taxation to occur.

Shoppe’s growth scares

This movement made by large retailers is attentive to values ​​that exceed 50 billion reais in the sector. shopee and AliExpress are the companies that have given Brazilian billionaires the most headaches.

Shopee was cited by 36% of Brazilians in a recent survey, referring to purchases made in 2021, according to analyst Morgan Stanley. In comparison, in 2020, only 6% of Brazilians had the Chinese retailer in mind when thinking about online shopping.

AliExpress, through Ken Huang, head of the company in Brazil, announced in 2019 that it would open a warehouse in the country to ship products from China. He aims at the agility of deliveries, making logistics the focus for the company to be able to face Brazilian retailers.

And in the midst of all this, Brazilian retailers have suffered other blows, such as the current state of the Brazilian economy and the loss of value of shares on the stock exchange, which caused these companies to shrink by 58%. On the other hand, bank analysts Goldman Sachsproject a 20% growth by Shopee over the next three years.

Recently, Ibaneis Rocha (MDB), governor of the Federal District, levied an 18% ICMS tax on purchases from abroad and from companies that do not have a distribution center here in Brazil.

Unfortunately, this should affect consumers who often shop abroad online because of the more affordable prices.


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Source: Look

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