Haddad says Shein should nationalize 85% of sales in Brazil

“It is very important for us that they see Brazil not only as a consumer market, but as a production economy”, he declared.

Another commitment signed, according to the minister, was the company’s adherence to the Federal Revenue’s compliance plan. Haddad pointed out that the Chinese expressed their willingness to “normalize relations with the Ministry of Finance”.

Today’s meeting was attended by the president of the Federation of Industries of the State of São Paulo (Fiesp), Josué Gomes. “Due to the announcement of job creation and investments in Brazil, he made a point of accompanying them, even to witness the commitment signed”, said the minister.

Haddad added that Shein asked that the established rule apply to everyone. “We obviously don’t want anything different. We want equal conditions for everyone. And, according to them, if the rule applies to everyone, they will absorb the costs of compliance. They will not be passed on to the consumer”, revealed the Minister of Finance.

Impact

Regarding the possible loss of expected revenue for taxing companies of this type, Haddad said that the “impact is even small compared to the tax reform that is being carried out to charge those who do not pay”.

“President Lula signaled that he would like an administrative solution negotiated with e-commerce itself. To avoid any kind of problem, we are going to follow the example of developed countries, which they call digital abroad. tax, a digital tax. That is, when the consumer buys, he is relieved of any tax collection, the tribute will have been made by the company without passing on any additional cost to the consumer”, he stressed.

The Minister of Finance also stated that this negotiated exit contemplates what was being demanded by the Brazilian trade networks. “It is not right for a person who has an investment in Brazil to suffer unfair competition from anyone,” he opined.

Haddad also informed that the next steps include a meeting with governors. “We have a pre-scheduled meeting next week to finalize the last details of this. And, if we have to make a gradation in the measures, we will do it to contemplate and accommodate the interests of bringing the system into the Brazilian legal order, the Brazilian tax order”, he specified.

Principles

Even today, the minister will meet with representatives of the Institute for the Development of Retail (IDV). “The principles are already established. What is the principle? Fair play, fair play, no one takes advantage of anyone. Competition is only good when everyone is on equal terms, then whoever has the best product and the best price wins. We want to preserve the consumer’s right to access consumer goods,” he declared.

He said other platforms – Shopee and Ali Express – have already expressed interest in joining the compliance plan. “There was a nod from those who made the nod today (Shein), out of respect for Brazilian sovereignty, for Brazilian laws that every large company has to do”, he indicated.

For the minister, the regulation must be done properly “to the point that no one is harmed. On the contrary, commerce will win, economic activity will win, we will have job creation that is obstinacy of the Ministry of Finance and the federal government”.