Awesome… just when the Brazilian consumer thought he has found a shortcut to buying cheaper goods (from baby clothes to electronics) in Miami and NY, Receita Federal (the Brazilian IRS) decided to step in and “cockblock” everyone at the party (excuse us for our French!) by taxing most of it.
Sweet, right? Not!
According to an educational video released today by Receita Federal (Brazil’s IRS) to provide luggage information for international travelers, the person who brings baby clothes or other gifts from abroad should have to pay 50% of its value in “import tax”.
With regards to clothing, the only tax-exemption is for clothes used on the trip. Everything else, be it gifts or baby outfits, for example, are fully taxable under the total spending limit of US$500.
Still according to the video, the tax exemption applies only to personal property used in the trip (clothes, camera, cell phone and wristwatch), but items such as camcorders, computers and tablets will not be tax exempt in any circumstance.
Our opinion: Don’t you love it? Just please don’t tell us that Brazil is the new model of capitalism: our beloved Brazil is a 100% state-controlled economy, period. As far as we remember, capitalism means free markets…