The creation of a Provisional Measure (MP) is expected to increase the taxation of products sold through the applications cross border, that is, commercial activity from other nations. In this situation, popular platforms such as Shopee, aliexpress, Shein It is wish. The XP company released a report on the possible impacts on retail stocks.
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Brazilian retailers are lobbying the government to tax these apps and increase enforcement over requests from these platforms to reduce their sales escalation and reduce their competitiveness in the market Brazilian. However, the report reinforces that the MP can have negative impacts in an election year.
Measure may be unpopular in election year
According to the information contained in the report, the main challenges to be able to implement the measure, and which will make it unpopular, are the reduction in the purchasing capacity of average Brazilian consumers, as well as the challenges of inspecting through the Federal Revenue, since the Shopee's platform alone was responsible for over 140 million shipments in Q4, which averages 1.5 million per day.
“Our policy team confirmed that there is indeed some resistance to the measure due to the first point, while a solution for the second would be to tax purchases directly on the website. On the popular side, the measure would give strength to Brazilian retailers and industries, which could boost income/employment generation in the country”, he explains.
Fashion retailers will benefit the most
If the MP advances, the company's analysts see that the main beneficiaries will be fashion retail stores. For these retailers, MP will have a positive impact on their business, as today, Shein, which also works with fashion, manages to offer a low price, while Brazilian companies are disadvantaged, as they are unable to compete with these values due to the high tax rate in the country. Brazil.
“In the case of Shopee, we believe that the possible increase in taxation would increase the company's focus on accelerating the capture of local sellers, which already exceed 2 million and represent more than 85% of the marketplace sales”, put.
The report shows that XP remains cautious with e-commerce companies, with a more constructive eye on Lojas Renner.
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