Rio proposes to exempt foreigners from tax on merchandise


Alejandro Buero, Blue Americas World Government Director; Luiz Velloso, adviser to the Presidency of Fecomércio RJ; Luiz Gustavo Bichara, founding accomplice of Bichara Advogados; José Brito, president of ACRJ; and Sávio Neves, Secretary of Tourism of the State of Rio de Janeiro

Rio de Janeiro may change into the primary state in Brazil to undertake Tax Free Purchasing, a tax mannequin that encourages overseas vacationers to purchase Brazilian merchandise tax-free from ICMS, PIS/Pasep and Cofins, for instance.

Offered to enterprise and political leaders in Rio de Janeiro this afternoon (20), on the headquarters of the Industrial Affiliation of Rio de Janeiro (ACRJ), the undertaking foresees a rise of no less than R$6.8 billion in tourism GDP Brazilian in 10 years, taking into consideration Tourism knowledge from 2018 and 2019, if the federal authorities approves the Tax Free coverage for federal taxes (PIS, COFINS and IPI). Within the state of Rio de Janeiro, with the ICMS exemption, the estimated improve throughout this era can be roughly 1 billion lei per yr in Rio de Janeiro’s GDP.

“This can be a program that’s adopted as a public coverage mechanism to extend tourism GDP in additional than 60 nations. The supply of cheaper items and companies is a decisive attraction for vacationers after they select the vacation spot of a visit”, highlighted Diogo Bueno, CEO of Monex, a consultancy working in partnership with the operator World Blue to undertake the undertaking in Brazil. .

“The implementation of Tax Free will put Rio on the map of contemporary shopper relations, which not solely boosts tourism, but additionally strengthens the retail commerce related to this movement of individuals and capital. And it additionally reinforces an essential vocation of Rio, welcoming overseas vacationers. With this step, we are going to place commerce and tourism in a brand new normal of worldwide consumption”, emphasised the president of Fecomércio RJ, Antonio Florencio de Queiroz Junior.

“Tax Free is a measure with little influence, from the viewpoint of assortment, however with a really excessive influence when it comes to worldwide vacationer movement from Rio de Janeiro,” noticed ACRJ President José Antonio do Nascimento Brito. “Tax Free is an initiative that may collaborate in a really efficient method for tourism and the financial system of the state of Rio de Janeiro and Brazil. The present excessive consumption tax suppresses vacationer spending and discourages the movement of recent guests. We ended up exporting taxes, not merchandise,” stated Luiz Gustavo Bichara, founding accomplice of Bichara Advogados.

A number of European nations already function with the Tax Free program. In Latin America, Argentina, Chile, Colombia, Peru and Uruguay have additionally applied the system. Among the many largest Tax Free operators on this planet, World Blue America operates in 53 nations and realizes the event potential of the Brazilian market. “Eleven nations in Latin America have already got Tax Free Purchasing in operation or are engaged on implementing it. Brazil wants to maneuver on this route,” stated World Blue Americas CEO Alejandro Buero.


In brief, the undertaking represents an incentive for the export of Brazilian merchandise. With the adoption of the Tax Free Purchasing public coverage, it’s estimated that the expansion price of Brazilian tourism GDP for each R$1 lowered in assortment is as much as six instances this quantity. Thus, in 10 years, the influence on GDP – even with the discount in assortment – can be round R$ 7 billion. Given the projection of a income discount of roughly R$ 115 million per yr, the annual internet fiscal impact can be no less than R$ 103.6 million per yr by means of the export of Brazilian merchandise, for the reason that estimated annual income is 218.6 million R$.

The influence of the Tax Free coverage wouldn’t solely be from an financial viewpoint, for the reason that advertising and marketing and promotion of Brazil as a vacationer vacation spot can be carried out by probably the most completely different worldwide resort chains, famend manufacturers within the vogue world, tour operators. , along with the varied communication and social media platforms within the tourism and commerce sector. Retail commerce, then again, would nonetheless have an impetus for its formalization: so as to have the ability to take part in this system it’s essential to adjust to all its fiscal and sectoral obligations.


In response to knowledge from the British consultancy CEBR, which utilized a technique to research the influence of Tax Free within the nations the place it was applied, within the state of Rio de Janeiro, the extra potential of spending by overseas vacationers with the implementation of Tax Free can be roughly 47 million R$. In Tourism GDP, the rise can be R$96 million and the online fiscal impact of the undertaking can be R$3 million. That’s, utilizing the identical knowledge from 2018, based mostly on this technique, the state of Rio de Janeiro can be ready, in 10 years, to extend the Tourism GDP by roughly 1 billion lei.

“By way of the Tax Free establishment, the state of Rio de Janeiro can be on the identical stage as main vacationer locations, producing incentives for vacationers with reductions when making purchases. Setur-RJ helps this apply and, along with the state authorities, will set up the incentives that business items will promote”, highlighted the State Secretary for Tourism, Sávio Neves.

In Brazil, the extra spending potential by overseas vacationers with the implementation of Tax Free can be roughly R$334 million. In Tourism GDP, the rise can be R$677 million, and the online fiscal impact of the undertaking can be R$104 million. In different phrases, based mostly on knowledge from 2018, based mostly on the worldwide methodology of the World Tourism Group, Brazil can be ready, in 10 years, to extend the GDP of Tourism by roughly R$ 6.8 billion, producing new revenues of the order of BRL. 1 billion. This estimate doesn’t keep in mind any additional enchancment within the movement of overseas vacationers to Brazil.


In the meanwhile, two initiatives are beneath improvement in Brazil: the federal undertaking and the initiatives within the States, with Rio de Janeiro at a extra superior stage. Each initiatives can run in parallel and be applied independently. On the federal stage, the 2017 Complementary Invoice N 353-B, which establishes the Tax Free program, has already been accredited by the three thematic Committees of the Chamber of Deputies: the Particular Committee for Tourism, Finance and Taxation and the Structure and Justice.

“Seems to be like we’re debating right here whether or not the lamp is best than the lamp! There isn’t a doubt that tax free is extraordinarily constructive for the nation. Furthermore, it’s a undertaking that should be exact, quick and goal. for the vacationer, remembering that Rio de Janeiro is the gateway for overseas vacationers”, concluded the president of the ABIH-RJ Deliberative Council and the president of the ACRJ Tourism Council, Alfredo Lopes.

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