BRAZIL. Brazil’s government has retreated but only temporarily from its shock announcement that it plans to halve the duty free allowance for Brazilians shopping at the country’s land border stores.
The move, announced by the Secretaria da Receita Federal (Department of Federal Revenue) last Monday (21 July), would cut the allowance from US$300 to US$150. [UPDATE: For the latest reaction from Uruguay, click here].
Following protests from the travel retail sector in neighbouring countries, Receita Federal Secretary Carlos Alberto Barreto announced that the measure would be suspended until at least 30 June 2015 to allow for appropriate regulation and adjustment.
Brazilians thus continue to have a duty free allowance of US$300 for goods bought at border stores outside the country. The allowance for tourists travelling by air remains unchanged, at US$500.
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The Baron de Mauá Bridge crossing from Rio Branco in Uruguay to the Brazilian city of Jaguarao, a busy conduit for Brazilian duty free shoppers |
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How the news was reported locally |
However, according to Brazil’s Ministry of Finance, the proposed measure will come into effect from July 2015, alongside implementation of legislation to permit duty free stores in twin cities across the border from major shopping destinations in Argentina, Bolivia, Paraguay and Uruguay.
The Ministry noted that its Mercosur partners have all adopted the US$150 allowance, with Brazil the only exception.
