Taxation of imported products in Brazil: an analysis of its economic effects

Abstract

The taxation of imported products is a matter of great relevance to the Brazilian economy, as fiscais policies related to this subject can impact various sectors and influence the country's international trade. In this article, we conduct an analysis of the rules regarding the taxation of imported products in Brazil and their economic impacts. We explore the main laws and regulations in force, examining the taxes imposed on imports, such as the Import Tax, the Tax on Industrialized Products (IPI), and the Program for Social Integration (PIS) and the Contribution for the Financing of Social Security (COFINS) applicable to imports, including the incidence hypothesis, the triggering event, and the tax competence. In this study, we will analyze the economic impacts of these policies, such as their effect on the prices of imported products, domestic demand, local production, foreign investment, and economic growth. We will also discuss the taxation rules for digital platforms (such as SHEIN, SHOPEE, and ALIEXPRESS). Additionally, we will examine practices of tax evasion and smuggling, as well as informality in foreign trade, which can result in revenue loss for the government and harm the domestic industry. Furthermore, we will explore how taxation serves as a mechanism for economic development.