Brazil's Congress upholds zero-tax policy on imports under $50

BRASILIA, Sept 3 (Reuters) - ‌Brazil's Congress ​voted ​on Thursday to uphold an executive order by President Luiz Inacio ‌Lula da Silva that scrapped federal ⁠import taxes on foreign purchases worth up to $50, ‌handing a victory to ‌the leftist leader's reelection bid.

• Lula had signed the order in May, reversing course ​on a highly unpopular levy ahead of the October election, when he ⁠will seek a fourth non-consecutive term.

• The move aimed to ​lower the cost of goods bought on cross-border e-commerce platforms widely used ​by lower-income Brazilians.

• But the ‌order was issued as a provisional measure, giving both houses of ⁠Congress 120 days, or until September 8, to either uphold or strike down the ⁠order.

• Government officials previously backed the tax, arguing it ​would boost Brazil's industry against foreign platforms such as Alibaba Group's AliExpress, Sea Ltd-owned Shopee and Shein.

• ‌However, multiple surveys had suggested the tax was highly unpopular. An ‌AtlasIntel/Bloomberg poll from April showed that ⁠60% of those ‌surveyed opposed the ​taxation.

(Reporting by Maria Carolina Marcello; Writing by Fernando Cardoso, Editing by Natalia ‌Siniawski)

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