BRAZIL. President Jair Bolsonaro announced yesterday via his Twitter account that the Federal Government will double the duty free allowance for airport duty free shop purchases and sharply boost the land border store allowance.
In surely the first major duty free regulatory change to ever be announced on Twitter, Bolsonaro tweeted via his personal account, “The government will double the current limit for free shop purchases. Minister of Economy Paul Guedes, at our request, is preparing a decree for the coming days. Brazilians returning from overseas travel will be able to buy US$1,000 worth of airport products – today the limit is $500.”
The news represents a big boost for Brazilian travel retail and for dominant retailer Dufry in particular.
The increases are also benefical for the cruise business. MSC Cruises Head of Retail Adrian Pittaway told The Moodie Davitt Report, “It’s great news and for us also a positive benefit for our four ships based out of Brazil this winter.”
In a follow-up tweet, Bolsonaro revealed that the duty free allowance for Braziilians crossing into Paraguay to shop will rise from US$300 to US$500.
Confirming the news, José Luis Donagaray, Secretary General of the South American Duty Free Association ASUTIL, told The Moodie Davitt Report, “It’s a very good development that represents the result of very good and hard work by Dufry Brazil and ASUTIL. We expect the regulations to be published next week.”
